Foreign Oil Bill Drives Trade Deficit Up

With the bill for foreign oil skyrocketing to new heights, the U.S. trade deficit jumped 7.8% to $60.9 billion, the highest level in 13 months, the Commerce Department reported. The growing imbalance was fueled by a $4.3 billion increase in crude oil imports, which surged to a record $29.3 billion in April, as the average price per barrel shot up to all-time highs. And, with oil prices continuing to climb the bill for foreign oil is expected to ramp up in coming months. U.S. exports totaled $155.5 billion in April, up 3.3% to an all-time high, reflecting big gains in sales of commercial aircraft, farm machinery, medical equipment and computers, the government reported. But, that was offset by a 4.5% jump in imports, reflecting the big hike in oil prices as well as gains in imports of autos and consumer goods. The politically sensitive deficit with China rose 25.9% in April to $20.2 billion, reflecting higher imports of cell phones, toys and games, televisions and other electrical appliances and clothing.

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Date Last Updated: 06/13/2008