Trade deficit jumps to highest level in 13 months

The trade deficit soared to the highest level in more than a year as an improvement in exports was swamped by record-high levels of imported crude oil. The deficit with China also rose sharply.

The gap between what the nation imports and what it sells abroad rose by 7.8 percent in April to $60.9 billion, the Commerce Department reported Tuesday. It was the largest imbalance since March 2007.

The higher deficit was driven by a $4.3 billion increase in crude oil imports, which jumped to a record $29.3 billion in April, as the average per-barrel price rose to an all-time high of $96.81.

If the price of crude had instead been at $60 per barrel, about where it was a year ago, the trade deficit would have been $11 billion lower in April. Analysts cautioned the deficit will widen further in coming months, given that oil is now trading above $130 per barrel.

U.S. export sales totaled $155.5 billion in April, up 3.3 percent to an all-time high, reflecting big gains in sales of commercial aircraft, farm machinery, medical equipment and computers. But this increase was swamped by a 4.5 percent rise in imports, which also set a record at $216.4 billion. In addition to oil, there were huge gains in imports of autos and consumer goods. Full Story........