U.S. trade gap shrinks to $41.75 billion amid lower oil prices, cheaper energy costs
WASHINGTON—Cheaper U.S. energy prices and lower demand for foreign oil helped narrow the U.S. trade gap in January.
The trade deficit shrank to a seasonally adjusted $41.75 billion in January, the Commerce Department said Friday, as crude imports fell and created the lowest deficit for petroleum products in over a decade.
December’s deficit was revised to $45.6 billion from an initially reported $46.56 billion. Economists surveyed by The Wall Street Journal had forecast a trade deficit of $41 billion in January.
Overall, exports decreased 2.9% from December to $189.41 billion, and imports also fell 3.9% to $231.16 billion.
The drop off in both imports and exports reflects an array of factors, primarily the steep drop in crude oil prices, but also disruptions related to a West Coast port labor dispute, a firming dollar and the relative strength of the U.S. economy.
After topping $100 a barrel in June, benchmark oil prices declined sharply, reaching below $45 in January.
Last month, the trade deficit for petroleum products fell to $10.69 billion, its lowest level since November 2003. The average price of a barrel of imported crude oil was $58.96 in January, down from $73.64 in December and $90.21 a year earlier, the Commerce Department said.
