Rising oil prices push US trade deficit to second highest level
The Commerce Department reported yesterday that the US recorded a $54 billion trade deficit in August, the second highest level in history, due to high-priced oil and Chinese-made imports. The trade deficit widened by 6.9% to $54 billion in August, only slightly below the record $55 billion deficit in June. The level of the deficit surprised analysts, who had expected a deficit of about $51.5 billion. The US Dollar fell after the news of the widening trade gap was released. In the mentioned period, imports rose by 2.5% to a record $150.1 billion while exports were recorded as $96 billion with a rise of just 0.1%. One of the reasons for the trade deficit is the high price of oil, which is on a rapid upward trend, and the other reason is the increased trade gap between the US and its main trading partners. The shortfall with members of the Organization of Petroleum Exporting Countries (OPEC) surged by 17.4% to $7 billion. The US trade deficit with China rose by 3.3% to $15.4 billion in August from $11.7 billion recorded in the same period of last year. The trade gap with Canada expanded by 12.7% to $6.6 billion while the gap with 25 member states of European Union shrank by 9.2% to $9.6 billion. The US shortfall with Japan was stable at $6.4 billion.