Economists assumed oil prices would average $59 a barrel when compiling the state’s revenue forecast, but state leaders are expected to meet early next month to adopt a new revenue forecast that will determine how much money lawmakers and Gov. John Bel Edwards have to spend. The price of oil has dropped by nearly half ahead of that meeting, trading in the low $30s a barrel in recent days.Now that doesn't necessarily mean they will have lost $330 million just like that. For one thing the revenue estimate is based on the expected price of oil over the course of the entire year. So if the price rebounds later, it could average out to be a negligible difference.
For every $1 drop in the price of oil, Albrecht said, Louisiana loses about $11 million to $12 million in direct tax revenues.
Of course, that story was from a week ago. Today we have another look and...
Aaanyway... just tell the legislators to sit tight for now. Coming back in to work too soon could be even more dangerous than it already is.The American oil benchmark West Texas Intermediate dropped 24 percent to just over $21 a barrel, the lowest price since 2003.The global Brent benchmark fell to just above $25 a barrel, a level just below January 2016. Oil prices are more than 60 percent below where they were at the beginning of the year.
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