WASHINGTON, June 13 - A sharp drop in oil prices pushed the U.S. trade deficit slightly lower in April, but it still was the third highest on record at $42.0 billion, the U.S. Commerce Department said on Friday. Average prices for imported oil tumbled to $26.02 per barrel, from $30.27 in March, when feared supply disruptions from the Iraq war did not occur. It was the largest month-to-month decline in oil prices since early 1991.
However, the volume of crude oil imports was the second highest on record, and the U.S. trade deficit with OPEC widened to a record $5 billion. The monthly decline in the trade deficit was in line with analysts' expectations. However, revised data from the Commerce Department put the record for the monthly trade deficit at $42.9 billion in March, while the December trade deficit was revised downward to $42.3 billion, making it the second highest on record. Overall U.S. imports declined slightly more than 2 percent in April, with oil and other industrial supplies and material accounting the biggest portion of the drop. However, smaller declines for autos and auto parts and consumer goods could be a sign the weaker dollar is dampening import demand. Exports also dropped more than 2 percent, with capital goods such as computer accessories and industrial engines leading the decline. U.S. manufacturers have struggled to increase exports in the face of weak overseas demand and stiff competition from China.//