Higher Oil Prices Widened U.S. Trade Deficit in October

From: http://www.nytimes.com/2007/12/13/business/13econ.html
By Reuters

The Commerce Department reported that United States trade deficit increased slightly in October, due to the higher price for imported oil.

The Labor Department reported that the increased oil costs also make the import prices 2.7% higher in November.

The monthly trade deficit grew 1.2% to $57.8 billion, since the average imported oil prices reached $72.49 per barrel.

During the first nine months of this year, the US overall trade deficit decreased more than 8% after approached $785.5 billion in 2006.

The stronger growth of exports helped the economy continued go up although other parts of the economy are dropped.

But still, even though the deficit is narrowed, but the bilateral trade gap with China is still growing up, reached the record $25.9 billion in October. China is definitely a big market and large demanding place for US to export different kinds of products.

No wonder oil is the one of the most important factors that affects economy condition, since most the countries do not produce as much oil as they use, they all depend on the imported oil. And country like Saudi Arab started decreased the number of exported oil, and the non stop war threats on Middle East region. I think, the oil prices will keep going up, and this the problem that not easy to deal with.