ABSTRACT

U.S. Trade Deficit and the Impact of Rising Oil Prices [December 12, 2008]   [open pdf - 369KB]

"Petroleum prices rose sharply in the first half of 2008, at one time reaching more than $140 per barrel of crude oil. Since July, however, petroleum prices and import volumes have fallen at a historically rapid pace; in November, prices of crude oil fell below $55 per barrel. At the same time the average monthly volume of imports of energy-related petroleum products fell slightly. The sharp rise in the cost of energy imports added an estimated $50 billion to the nation's trade deficit in 2006 and another $28 billion in 2007. The fall in the cost of energy imports combined with the drop in import volumes as a result of the slowdown in economic activity has reversed the trend of rising energy imports costs and will sharply reduce the overall costs of U.S. energy imports for the rest of 2008. This report provides an estimate of the initial impact of the rising oil prices on the nation's merchandise trade deficit. This report will be updated as warranted by events."

Report Number:
CRS Report for Congress, RS22204
Author:
Publisher:
Date:
2008-12-12
Series:
Copyright:
Public Domain
Retrieved From:
U.S. Dept. of State, Foreign Press Centers: http://fpc.state.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations