Moody’s Investors Service: Oil price slump now to hit US state budgets

Lower tax revenues because of job losses due to the collapse in oil prices will hit budgets of US oil-producing states this year and next, Moody’s Investors Service said.

The warning comes as Brent crude oil prices yesterday hit their lowest in more than 11 years.

Oil production is running close to record highs and, with more barrels poised to enter the market from nations such as Iran, the US, and Libya, the price of crude is set for its largest monthly percentage decline in seven years.