U.S. trade deficit hits highest level ever

The U.S. trade deficit expanded sharply in January, hitting the highest level in seven months, as the surge in crude oil prices had a greater impact on the data than the record high exports.
The U.S. Department of Commerce announced on Thursday that the U.S. trade deficit in goods and services expanded by 15.1% in January to $46.34 billion. The trade deficit in December 2010 was revised downward to US$40.26 billion, and the preliminary figure was US$40.58 billion.
U.S. exports increased by 2.7% in January to $167.74 billion, a record high. Imports increased by 5.2% to US$214.08 billion.
The full-year export volume in 2010 was slightly revised upward to US$1.83 trillion, an increase of nearly 17% from the previous year, indicating that the US government’s goal of doubling export volume by 2015 is being achieved as planned. This goal requires annual export growth to reach 15%.
With the unrest in the Middle East causing oil prices to exceed US$100 per barrel, the cost of meeting energy needs in the United States has greatly increased. U.S. crude oil imports increased to $24.51 billion in January from $22.54 billion in December 2010. The average price of crude oil rose $4.56 a barrel to $84.34, the highest level since the last oil price surge in October 2008. Crude oil imports increased from 282.58 million barrels to 290.67 million barrels that month.
Imports of various energy products in January were US$32.16 billion, higher than US$29.2 billion in December 2010.
At the same time, the U.S. trade deficit with most major trading partners, including Mexico, Canada and Eurozone countries, remained relatively stable in January.
However, the U.S. trade deficit with OPEC members expanded by nearly 20% in January to $9.95 billion, the highest level since October 2008.
The U.S. trade deficit with Japan narrowed by more than 15% in January to $4.98 billion.