38°

ANCHORAGE - The price of Alaska oil topped $100 this week for the first time ever before dropping back below the milestone mark on Wednesday.

North Slope crude oil for delivery to West Coast open markets closed on Wednesday at $99.64 a barrel. It had risen to $100.73 a barrel on Tuesday.

"I'm not astonished anymore," said Michael Williams, the state's chief economist, who has seen oil prices rising steadily from about $40 a barrel for the past four years.

State economists said nervous traders are stuck in a tight market that's very sensitive to minor disruptions.

Traders perceive energy demand continuing to charge ahead in places such as China and India, he said.

"We're not running out of oil. There's enough out there for everyone," Williams said. "I believe it's more psychological than anything else."

High oil prices are contributing to a state budget surplus. About 85 percent of Alaska's general fund comes from oil taxes and royalties.