The U.S. July trade data reflect how the summer peaks in oil prices boosted imports and, with crude prices currently in retreat, mask underlying improvement.
The July trade balance printed down — $62.2 billion as crude prices peaked at a record average $124.66 and volume rebounded. July imports posted a $8.7 billion rise as a result, with $7.2 billion of the gain in oil and related products. The June trade balance was a revised $58.8 billion deficit.
Oil imports totaled $42.6 billion in July, a record achieved because crude imports surged after several months of being subdued. Imports of 342 million barrels of crude were the highest since June 2004.
Rising imports overwhelmed the otherwise healthy $5.4 billion advance in July exports. Export gains came across many categories. Autos printed up $1.4 billion, non-monetary gold $743 million higher, and civilian aircraft and parts grew $300 million.
The non-oil goods deficit was $29.63 billion, its lowest since October 2002.
— Market News International
