The U.S. trade deficit widened more sharply than expected in August to a record $69.9 billion as higher oil prices pushed the bill for imported petroleum products to a new record, the Commerce Department reported Thursday. The August trade deficit was up 2.7 percent from July s $68 billion, which also had been a record. Both exports and imports were at record levels in August, but exports grew by 2.3 percent to $122.4 billion while import growth grew 2.4 percent to $192.3 billion. More expensive oil was again a key reason for the rising monthly trade deficit. The $4.6 billion increase in imports was led by a $1.1 billion increase in oil imports, which hit a record high of $29.7 billion, reflecting an increased volume of oil shipments and a record average price of $66.12 a barrel of imported oil. The shortfall with oil-producing OPEC countries rose to a record $11.2 billion in August from $10.9 billion the previous month. The politically-sensitive deficit with China jumped 12.2 percent to a record $22 billion in August and is running 13.5 percent above last year, when it reached $202 billion, the highest ever recorded with a single country. The deficit with China was double the $11 billion imbalance with the European Union and three times the $7.5 billion shortfall with Japan. The deficit with Canada rose to $6.1 billion in August from $5.9 billion the previous month. The U.S. trade deficit is on track to set a record for a fifth consecutive year, running at an annual rate so far this year of $784.2 billion, 9.4 percent higher than last year s $716.7 billion.
