The U.S. trade deficit rose more than expected in November to the highest level in 14 months, reflecting record imports and surging oil prices, and despite a ninth consecutive month of record exports, the Commerce Department said Friday. The trade deficit jumped 9.3 percent to $63.1 billion. The increase was driven by a 16.3 percent increase in oil imports, which rose to a record high of $34.4 billion as the price of imported crude reached new records while the volume of shipments declined slightly. With oil prices last week touching $100 per barrel, analysts expect higher oil bills in future months. The big jump in oil prices pushed total imports of goods and services up by 3 percent to a record $205.4 billion. Although oil was a major factor, non-petroleum imports-including consumer goods-also set a record at $138.6 billion. Exports set another record, rising by 0.4 percent to $142.3 billion. Export demand has been growing over the past two years due to the weak U.S. dollar, which makes U.S. goods cheaper in foreign markets. Through the first 11 months of 2007, the trade deficit is running at an annual rate of $709.1 billion, down 6.5 percent from last year's record high of $758.5 billion. The politically sensitive trade gap with China declined slightly from the record high set in October. But the deficit with China over the first 11 months of 2007 totaled $237.5 billion, surpassing the annual record of $232.6 billion set in 2006. The trade deficit with Canada, the United States' largest trading partner, fell by 12.1 percent to $4.7 billion, while the imbalance with Mexico rose by 1.4 percent to $7.6 billion, and the deficit with the European Union fell by 12.6 percent to $10.4 billion.
