Oil Hit $67 Monday Morning

In early trading in London on Monday, May 4, the price of oil hit $67 per barrel and then declined to $66, according to Reuters.  The price is linked to "current supplies and weak Chinese factory activity countered expectations of a tighter supply and demand balance later this year." Some analysts' feel the decline in rig count in the U.S. indicates that the market is tightening for the second half of 2015. However, other analysts point out that, "There has yet to be any noticeable drop in U.S. oil production."  Other factors impacting oil prices include that in April OPEC oil output was the highest in 2-1/2 years, and the strong U.S. dollar makes oil more expensive for holders of other currencies