‘Smart Trade Group’– [US Trade Deficit Widens]

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New York, USA, 19-6-2009- ‘Smart Trade Group’: US trade deficit widened in April due to higher oil prices.

“Smart Trade Group” sources say that a 15% jump in the price of imported petroleum made a significant contribution to the widening of the US trade deficit in the month of April. This is the second consecutive month in which the US deficit with the rest of the world has widened and has coincided with the recent surge in the price of crude oil.

This, said one of the “Smart Trade Group” sources, is a correlation which is likely to continue as the oil price continues its inexorable march northwards in response to increasing speculation that the global economy may be exhibiting signs of recovery.

The gap for April stood at $29 billion against $27.6 billion in March which was the first time the measure had grown in 8 months.

Crude oil has more than doubled its price since it traded at little more than $35 a barrel in January and further gains are likely to make the reduction of the deficit more difficult in the months ahead said the “Smart Trade Group” source.

The US remains mired in a deep recession with unemployment standing at 9.2% despite government attempts to stimulate the economy.