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President of Treasury Board and Minister of Finance Jason Nixon shares Alberta’s 2026-27 first quarter fiscal update and economic statement on Thursday, Aug. 27, 2026. (Image Credit: Government of Alberta - YouTube.)
By The Canadian Press
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Middle East conflict, oil prices push Alberta’s finances back in the black

Aug 27, 2026 | 11:29 AM

Alberta’s finances have swung back in the black after war in the Middle East sent global energy prices surging.

The province’s latest fiscal update predicts a $2-billion surplus, a huge turnaround from the $9.4-billion deficit originally expected for the 2026 fiscal year.

It’s the latest reversal of fortune for the oil-rich province perennially tied to international energy markets.

Six months ago, the province anticipated West Texas Intermediate, the North American benchmark oil price would average US$60.50 a barrel this year.

Two days after the province introduced its February budget, the U.S.-Iran conflict began, choking off oil tanker traffic through the Strait of Hormuz, a vital shipping lane at the mouth of the Persian Gulf.

Since April, the province estimates the price of WTI has averaged just above US$88 per barrel.

With every dollar increase in the average WTI price, Alberta’s treasury stands to gain $680 million. For the latest numbers to pan out, WTI would have to average US$65 per barrel for the rest of the year, ending next March.

The government’s year-end results for 2025-26 have been delayed, but officials are anticipating the latest windfall will more than erase that year’s $4.1-billion projected deficit.

This report by The Canadian Press was first published Aug. 27, 2026.

(With files from rdnewsNOW)

by The Canadian Press