The new values of oil

"Landep News"

The new values of oil

The trade deficit within the US has reached its highest level. The spike in oil price that occurred in May, rose all the imports as exports declined.
The U.S. deficit regarding international trade goods rose with more than 15 percent. From an originally reported sum of $43.68 billion it got to $50.23 billion, said the Department of Commerce earlier today. The trade gap in April was estimated at $43.68 billion.
The deficit in may was considered the highest recorded since October 2008, was considerably larger than what the analysts from Wall Street reported.
U.S. slowly recovered from the record levels reached, dropping 0.5% with a total sum of 174.86 billion in exports, while imports increased by 2.6% reaching a total of $225.09 billion.
The recent spike in oil prices has literally obliterated the modest reduction within the gap from last year. Yet, Nymex has slowly settled the prices and got back under $100 per barrel, after peaking up to $115 per barrel back in May.
Today’s report reveals that the estimate crude oil price rose by 5 dollars and reached $108.07 per barrel in May.
The entire sum paid for crude oil imports was of $29.92 billion, compared with $26.03 billion from April. The quantity of oil imported was back to 275.25 million after suffering a considerable drop to only 252.25 million barrels back in April.
The U.S. paid a total of $38.78 billion for all kinds of energy related imports in May, considerably more than the $34.99 billion paid in April. The number of imports registered by the OPEC have not been so high since October 2008.
In the meantime, the trade deficit with China knew another rise reaching $24.96 billion in May (15.6 percent in rise). On the other hand, exports to China dropped by 1.9% reaching $7.82 billion. Imports rose swiftly reaching $32.78 billion (an estimate rise of 10.9%). Why such a big difference?
Despite the fact that U.S. Treasury refused to label China with the dangerous “currency manipulator” mark, they said that China’s yen needs to rise more than the 5% growth and faster as well. Several U.S lawmakers stated that Obama administration needs to act more aggressively in order to balance the, considered unfair trade, due to China’s weak currency and getting more support for punitive legislation.
Tuesday’s report has shown the actual deficit, which widened in May to a total of $47.78 billion from a considerably smaller $43.92 billion that was registered in April.
What will be the effect of all these deficits?

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