U.S. Trade Deficit Soars; Oil Imports Rise

(AP)  America's trade deficit shot up in July to the highest level in 16 months as oil imports hit an all-time high, offsetting strong export growth. The deficit with China climbed to the second highest level on record.

The Commerce Department reported Thursday that the deficit rose by 5.7 percent to $62.2 billion in July, much worse than the $58 billion deficit that Wall Street expected. It pushed the gap between what America imports and what it sells abroad to the highest level since March 2007.

The trade deterioration reflected the fact that crude oil prices hit a record in July, pushing America's foreign oil bill to an all-time high of $51.4 billion, up 13.7 percent from June.

The big rise in oil prices, with the average barrel of imported crude jumping to a record $124.66, pushed overall imports up by 3.9 percent to a record $230.3 billion.

That increase offset another strong showing for U.S. exports which rose by 3.3 percent to a record $168.1 billion, reflecting big gains in overseas sales of commercial aircraft, computers and U.S.-made cars. Exports have been the major bright spot for the U.S. economy in a year when the country has been battered by a prolonged slump in housing, rising unemployment and a severe credit crunch.

The Bush administration points to the export gains as justification for its support of free trade. However, Democrats contend the administration's pursuit of free-trade agreements left U.S. workers exposed to unfair competition from low-wage countries with poor environmental records such as China.

They blame the loss of more than 3 million manufacturing jobs since Bush took office in part on the soaring trade deficits, employment losses that have hit hard in key presidential battleground states such as Michigan, Ohio and Pennsylvania.

Democratic presidential candidate Barack Obama has said he will renegotiate the North American Free Trade Agreement with Canada and Mexico to get greater protection for U.S. workers. Republican John McCain has accused Obama of seeking to erect protectionist barriers that will make America less competitive in the global economy.

In July, the politically sensitive deficit with China increased 16.1 percent to $24.9 billion, the second highest gap on record.

Critics contend the administration has not done enough to combat unfair Chinese trade practices such as the country's currency system, which U.S. manufacturers say keeps the Chinese yuan undervalued by as much as 40 percent against the American dollar. That makes Chinese goods cheaper for American consumers while making U.S. products more expensive in China.

[lasercat-2009]

If our leaders were serious about our dependence on foreign oil they would pass legislation to get every new house built using geothermal heating and cooling and working to turn every house into a power plant with solar panels.

[tbweb]

`U.S. Trade Deficit Soars; Oil Imports Rise`

`Gap Widened To $63.2B In July As American''s Foreign Oil Bill Hit All-Time High`

There are some greedy Americans benefiting and profiting from this dependency on foreign oil at the expense of Americans, selling us down the river, if that were not the case this oil crisis would have been handled and nipped in the bud long ago. Exxon Mobile making over 40 billion in obscene profits in 1 quarter would be the first place I`d start investigating!

[csasko1]

Most of this news is outdated.... June?

Speculators putting over $300 billion dollars to raise the price of oil compared to only $30 billion in 2007 is a newer story. Fraud in the oversight of these commodities point to speculators as well.

First off Oil will fall below $100 a barrel within the next couple of weeks, maybe even days because OPEC is trying to set a floor of $90 per barrel.

I believe that oil will reach $75 in the next few months. The primary reason is the commodity has been treated like a stock. It has been pumped up, hyped up, and inflated to the point that the supply exceeds the demand. The individuals whom have done these are now pulling out in great numbers enjoying the profit of their joint venture and in doing so oil has been at free fall every since.

With Oil falling and the dollar getting stronger US imports will decrease and exports will increase

[sjc_1]

June 12, 2008

CONTACT: Allyson Groff or Blake Androff, 202-226-9019

Washington, D.C. - In an effort to compel oil and gas companies to produce on the 68 million acres of federal lands, both onshore and offshore, that are leased but sitting idle, House Natural Resources Committee Chairman Nick J. Rahall (D-WV) today introduced legislation that gives Big Oil one option - either "use it or lose it."
http://resourcescommittee.house.gov/index.php?option=com_content&task=view&id=389&Itemid=1

[missingamerica]

"The Bush administration points to the export gains as justification for its support of free trade."

If you look at things with this Administration''s eyes you can understand why this Administration believes that they are doing a fine job.

The core Republican constituency - the people who own and run the corporations that are doing the exporting and/or benefiting from cheaper offshore labor - are getting richer at an incredible rate.

Although that leaves the vast majority of America out in the cold, no doubt if you questioned Cheney over how this Administration''s policies only benefit the wealthy few his response would be:

"So?".

''Cuz that is the way Republicans are: This is not "our" America - this is "their" America, and both America''s mineral resources and its human resources exist solely to be abused and plundered as the Republicans see fit.

[be_real]

Are we drilling YET? what is the problem?

[rktsci3127]

yeswecan09...Though I like his ideas, I don''t like the old T. Boone puts that. We have 3 percent of the worlds oil.....we are using 25 percent of current production...and hopefully dropping. The problem with any new fuel source is distribution..and Natural Gas is currently the only other comodity that has any type of distribution in place.

[yeswecan09]

****Will you change your mind about drilling then, or will you simply starve to death following your foolish ideology?****

Lets see -- America has only 3% of the world''s oil, and yet we use 25% of the worlds oil. Do you really think we can dig our way out of that? Try as you like you Republicans can not make oil appear just because you put a hole in the ground.

The age of oil is coming to an end; we can either face the problem now while we have the luxury of time or we can wait until countries send armies into the oil rich areas, such as Iraq.

[omega40]

The operative part of this story is "The deficit with China climbed to the second highest level on record." Thoug this is buried in a story about oil, oil imports have nothing to do with that part of the trade deficit. Pity so *** little is produced in the US anymore, but that''s what they see for us, a nation of consumers, working service sector jobs, and living on credit.

[rktsci3127]

slim1h2o ...consisted of device on carb, lines to trunk, steel plate and propane tank. When it was running on gas you could feel the engine usual vibration..switching over to NG, you could hear or feel a thing, engine ran far smoother...and yes, there was a switch. Don''t know however if same could be used on engines produced now.