March 12, 2008	Wednesday	Rabi-ul-Awwal 3, 1429

WASHINGTON, March 11: The US trade deficit widened slightly in January as America’s voracious hunger for energy, especially crude oil, and Chinese imports showed few signs of abating.

The 0.6 per cent widening in the overall trade deficit, however, was smaller than anticipated, as the Commerce Department reported that the US trade gap widened to $58.2 billion in January compared with a revised $57.9 billion in December.

Most economists had expected the deficit to deepen to $59 billion.

“Undervaluation of the dollar against the Chinese yuan and high oil prices keep dragging the trade deficit up,” said Peter Morici, an economist at the University of Maryland.

Economists say the weak dollar, which has plummeted in value against other world currencies in recent months, has boosted US exports, but that the trade deficit has not benefited much due to US oil demand and rocketing oil costs which are priced in dollars.

The world’s biggest economy is also the world’s largest oil importer.

The United States imported over $27 billion worth of crude oil during January boosting its total petroleum deficit to a record $35.1 billion at the start of the year.

Soaring energy prices are forcing Americans to pay out more for their oil purchases. The average price for a barrel of imported oil struck a record $84.09 per barrel in January.

Some economists are concerned that surging oil prices, in addition to a deep housing slump, a widespread credit crunch and rising job cuts, could push the United States into a recession.

America’s trade gap with the Organisation of the Petroleum Exporting Countries widened by almost 23 per cent to a record $15.5 billion.—AFP