Russian invasion affects Oklahoma economy

Oklahoma State Treasurer Randy McDaniel says even though February gross receipts to the treasury show a continuing expansion of the state’s economy, the Russian invasion of Ukraine raises concerns for him–including inflationary pressure.

McDaniel reported that February gross receipts of $1.06 billion are up by almost 12% compared to the same month last year. He said it is a record high for February collections but also reflect the slowest rate of growth in seven months.

Twelve-month receipts of $15.61 billion are up by more than 19
percent compared to the prior period. Treasurer McDaniel urged caution in spite of the growth in revenue collections.

“The repercussions from Russia’s invasion of Ukraine are only beginning to be felt,” McDaniel said. “The attack has caused death and destruction to the people of Ukraine, and it presents an unacceptable threat to the economic stability here at home.”

The annual inflation rate hit 7.5 percent in January, up one-half of a percentage point from December. The Ukrainian War-fueled upsurge in oil prices and the spillover effect of Russian sanctions are expected to impact inflation in the months ahead.

Gross production collections in February jumped by 95.3 percent.
Those monthly payments come from December sales when West
Texas Intermediate crude oil averaged $70.71 per barrel and Henry Hub natural gas was priced at $3.76 per million BTU.

Increased gross production collections are expected in the coming months. February prices, to be reflected in April receipts, averaged  $91.64 for crude oil and $4.69 for natural gas.
The gross receipts report for February shows growth in all major revenue streams.