The world price of crude oil has flitted around the $110 a barrel level for weeks and has remained strong for months. According to the experts, the strong price is being driven by a steady increase in the American economy and continuing trouble in the Middle East.
The continuing threat to bomb Syria because of a chemical gas attack is responsible for the latest bump.
The turn of events does nothing for those of us who have to pay for gasoline to run our vehicles, and soon, to heat our homes.
It does, however, bring a smile to the face of provincial Finance Minister Jerome Kennedy.
Kennedy brought down a tough budget in the spring that included job and program cuts because the government was facing a massive deficit.
Offshore oil production was lagging and the price was hanging around the $90 a barrel level.
That view has changed dramatically in the ensuing few months.
If the price of crude continues to remain strong, that will cut into the deficit with every shipment that leaves the Grand Banks headed for market.
When Kennedy gets around to drafting a mid-year budget update he will undoubtedly have good news for taxpayers.
This financial turn of events is another indication of why this province must hang its economic future on more than the price of oil — which we have no control over.
If peace comes to the Middle East or the American economy stumbles this province will be right back struggling to pay our bills. Some creative thinking is required by politicians to cement our children’s futures.
That has been missing until now.