12 July 2006, 18:02  US May trade deficit widens 0.8 pct to 63.8 bln usd

The US trade deficit widened 0.8 pct to 63.8 bln usd in May as oil prices rose by the largest amount since the months just before the first Gulf War, the Commerce Department said. The average price of a barrel of crude oil rose 4.92 usd to a record 61.74 usd. That's the largest monthly increase in the average price of oil imports since the 6.06 usd jump between August and September 1990. Total imports rose 1.8 pct to 182.5 bln usd, while total exports rose 2.4 pct to 118.7 bln usd. The rise in exports is the fastest increase since December 2004. The trade deficit with China widened 4 pct to 17.7 bln usd, while the trade deficit with Japan narrowed 8.5 pct to 7.1 bln usd. For the year, the trade deficit is running at an annualized 763 bln usd pace, 6.5 pct higher than last year's deficit of 716.7 bln usd. Total imports from South and Central America in May rose 12.4 pct to a record 11.7 bln usd. Total imports from OPEC countries rose 20.2 pct to a record 13.6 bln usd.

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