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

WATCH

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.

GreenFox

Why waiting to replace your windows and doors could cost you more than you think

Jul 22, 2026

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

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

Middle East conflict, oil prices push Alberta’s finances back in the black

What's Happening