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The Oscillating Price of Oil

Oil has fallen in recent weeks, as the unexpected news that the U.S. would temporarily allow continued purchases of Iranian oil alleviated concerns that the lack of Iranian supply would push up prices. A ban was supposed to start November 4th, but the U.S. granted 8 countries 180 additional days to purchase Iranian oil. These countries had been halting their purchases of Iranian oil, buying from other sources, and helping push up oil prices.

Despite the six month extension, oil supply remains tight and oil prices may very well go higher rather than lower. Venezuelan exports continue to drop – with oil exports to the U.S. falling 19% in October and the outlook going forward looking very grim. While Saudi Arabia and Russia could increase production to make up for the eventual drop in Iranian exports, they plan to meet in December to discuss cutting production further. After six months, Iranian exports will fall as the extension expires. In the meantime though, U.S. consumers should benefit from lower than expected gas prices, which could be a nice bonus for holiday shoppers.

 

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.
Investment Advisory Team
Hefren-Tillotson

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Hefren-Tillotson Inc. is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN® for individuals and businesses. The firm’s wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFS’s. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills.