Originally published Wednesday, June 11, 2008 at 12:00 AM
Price of crude oil soars, pushing up U.S. trade deficit
The U.S. trade deficit jumped to the highest level in 13 months in April as America's bill for foreign crude oil soared to an all-time...
The Associated Press
WASHINGTON — The U.S. trade deficit jumped to the highest level in 13 months in April as America's bill for foreign crude oil soared to an all-time high.
The Commerce Department reported Tuesday that the gap between what the nation imports and what it sells abroad rose by 7.8 percent to $60.9 billion, the largest imbalance since March 2007.
The growing deficit was driven by a $4.3 billion increase in crude-oil imports, which jumped to a record $29.3 billion in April, as the average per-barrel price rose to an all-time high.
The deficit for April would have been $11 billion lower if crude-oil imports had averaged $60 a barrel instead of the record $96.81 a barrel.
The cost of oil imports is expected to climb further in coming months given that crude oil has continued its relentless rise.
U.S. export sales totaled $155.5 billion in April, up 3.3 percent to an all-time high, reflecting big gains in sales of commercial aircraft, farm machinery, medical equipment and computers. But this increase was swamped by a 4.5 percent rise in imports, which also set a record at $216.4 billion, reflecting the huge increase in oil as well as big gains in imports of autos and consumer goods.
The April deficit was $4.4 billion higher than the March imbalance of $56.5 billion.
The deficit through the first four months of this year is running at an annual rate of $707.5 billion, up slightly from last year's deficit of $700.3 billion, which was a 7 percent drop from 2006.
The improvement last year came after the imbalance set records for five consecutive years.
Many economists are looking for the deficit to shrink again this year as a sharp economic slowdown in the U.S. cuts into consumer demand for imports and the weak dollar helps to boost U.S. exports.
The Bush administration has switched signals after tacitly accepting the decline in the dollar for years to help boost U.S. exports.
Officials are now talking about the need for a stronger dollar, a reflection of the pain being inflicted on Americans by high gasoline prices.
![]()
While a weak dollar makes U.S. exports more competitive on overseas markets, oil producers demand higher prices for crude oil, which is priced in dollars.
Heading to Europe on Monday, President Bush said the administration would like to see the dollar strengthen.
The politically sensitive deficit with China, which had fallen sharply in March, rose by 25.9 percent in April to $20.2 billion.
The U.S. and China will hold a fourth round of high-level talks on economic issues next week in Annapolis, Md., although there is little expectation of any breakthroughs on any of the various trade tensions that have been spawned by the surge in the deficit with China to all-time highs over the past several years.
The trade tensions with China have led to calls in Congress for adoption of punitive measures.
For April, the U.S. trade deficit with Canada, America's biggest trading partner, jumped by 18.6 percent to $7.6 billion, the highest level since January 2006.
The deficit with Mexico rose by 14.2 percent to $6.8 billion while the imbalance with the European Union increased 14 percent to $8.5 billion. The deficit with the Organization of Petroleum Exporting Countries rose 10.5 percent to an all-time high of $15.6 billion.
Copyright © 2008 The Seattle Times Company
Tech execs double as scourges and sages at Allen & Co.'s media summit
Brier Dudley: Brier Dudley | Learning hard lessons from Boeing giveaways
UPDATE - 12:53 AM
Oil plunges below $65 on fears recovery may lag
Symantec, McAfee add firepower to market-share war

2009 fireworks time lapse
With strict parking rules enforced at this year's July 4th celebration on Wallingford Ave North, less cars and more spectators filled the streets.
Entertainment | Top Video | World | Offbeat Video | Sci-Tech
shopping

events for Monday, Jul. 6th
- IKEA Summer Sale
- Blackbird Spring Half-Yearly Sale
- Posh on Main Semiannual Sale
- Evo Independence Sale
editors' picks
More shopping guides- Landmark Smith Tower mostly vacant
- Property taxes: Appeals shoot up in King, Snohomish Counties
- Palin links resignation to 'higher calling' and blasts media in Facebook posting
- Former NFL MVP McNair killed
- Hard times for tourist towns means good deals for travelers
- Shooting unveils very different sides of McNair
- Tukwila residents rally against light-rail noise
- Quincy Jones remembers "the biggest entertainer on the planet": Michael Jackson
- Confessions of an Idol Addict | "American Idols" on tour: Live coverage from opening date
- Plasma and LCD beware; OLED screens ready to go mainstream
- Seattle Mariners at Boston Red Sox: 07/05 game thread
247 - Palin links resignation to 'higher calling' and blasts media in Facebook posting
172 - Hatred for the NBA runs deep, but don't take it out on the players
136 - Tukwila residents rally against light-rail noise
125 - Former NFL MVP McNair killed
112 - Property taxes: Appeals shoot up is King, Snohomish Counties
103 - Tent City on campus: UW stalls decision
100 - Anti-tax rally in Olympia attracts about 1,500
68 - Seeking your questions
53 - Mariners did their part, now they need help
44
- Property taxes: Appeals shoot up in King, Snohomish Counties
- Hard times for tourist towns means good deals for travelers
- Landmark Smith Tower mostly vacant
- Plasma and LCD beware; OLED screens ready to go mainstream
- Tent City on campus: UW stalls decision
- The People's Pharmacy | Estrogen mimicker found in sunscreen
- Toyota's Toyoda scolds execs for emulating U.S. car companies' mistakes
- Tukwila residents rally against light-rail noise
- Outdoor-theater season kicks off at Volunteer Park
- Seattle safety project: A snake shelter on Beacon Hill
