Oil Boom Helps to Shrink U.S. Trade Deficit by 22%

America's trade deficit narrowed sharply in June, driven by record exports and a shrinking bill for oil imports.  The trade gap fell more than 22% during the month, to $34.2 billion from $44.1 billion, according to the Commerce Department.  Exports notched their sharpest rise since September 2012, hitting their highest level, adjusted for inflation, on record.

The most recent report in part reflects a strengthening domestic energy industry. Imports of fuel oil and other petroleum products fell, while exports of both rose. When calculated in 2009 dollars, the trade deficit in petroleum products fell by almost $2.2 billion from May to $10.23 billion; the trade deficit in non-petroleum products fell by $5.93 billion to $37.38 billion.

The U.S. imports far more from China than it exports. In June, however, imports from China edged down while exports moved up.   (WSJ, 8/6/2013)