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US Deficit Shrinks To $40.6 Billion As October Petroleum Exports Rise To New Record

Tyler Durden's picture





 

Moments ago, the Census Bureau announced that in October the US trade gap narrowed to $40.6 billion (which still missed expectations of "only" a $40 billion deficit) from an upward revised September deficit of $43 billion, as oil sales boosted exports to record level. Total exports rose to a record $192.7 billion up $3.4 billion from last month's $189.3 billion, while imports rose just $1 billion to  $233.3 billion resulting in a $40.6 billion gap. Among the report highlights: October exports of goods and services ($192.7 billion), exports of goods ($135.3 billion), and exports of services ($57.4 billion) were the highest on record; October imports of goods and services ($233.3 billion) were the highest since March 2012 ($234.3 billion); and perhaps the best news for shale fans: October petroleum exports ($12.5 billion) were the highest on record.

Looking at the key goods category, The September to October increase in exports of goods reflected increases in industrial supplies and materials ($1.5 billion); consumer goods ($1.0 billion); foods, feeds, and beverages ($0.6 billion); capital goods ($0.3 billion); and other goods ($0.2 billion). A decrease occurred in  automotive vehicles, parts, and engines ($0.2 billion). The September to October increase in imports of goods reflected increases in industrial supplies and materials ($0.8 billion); consumer goods ($0.5 billion); other goods ($0.4 billion); and foods, feeds, and beverages ($0.3 billion). Decreases occurred in automotive vehicles, parts, and engines ($1.0 billion) and capital goods ($0.3 billion)

Broken down by country, The October figures show surpluses, in billions of dollars, with Hong Kong $2.8 ($3.2 for September), Brazil $1.7 ($1.0), Australia $1.4 ($1.5), and Singapore $1.2 ($1.3). Deficits were recorded, in billions of dollars, with China $28.9 ($30.5), European Union $14.3 ($8.0), Germany $6.9 ($6.1), Japan $6.4 ($5.5), OPEC $5.6 ($5.9), Mexico $4.1 ($5.3), Ireland $3.2 ($1.8), Saudi Arabia $3.1 ($3.2), Canada $3.0 ($3.2), India $2.0 ($1.7), Venezuela $1.9 ($1.3), and Korea $1.7 ($2.1).

Finally, the US reported record exports with Canada and Mexico, while both exports and imports with China hit a new all time high.

 


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Wed, 12/04/2013 - 09:56 | Link to Comment Keyser
Keyser's picture

With absolutely ZERO assistance from the current administration. Can anyone say Keystone pipeline?

 

Wed, 12/04/2013 - 10:01 | Link to Comment Flakmeister
Flakmeister's picture

Do you know why WTI has gone up ~$3.50 in the past couple of days while Brent has been flat? If you don't, you really should simply STFU as you are polluting the thread with drivel...

Wed, 12/04/2013 - 10:06 | Link to Comment max2205
max2205's picture

Is china channel stuffing us?

Wed, 12/04/2013 - 10:40 | Link to Comment Flakmeister
Flakmeister's picture

WTF has that to do with it?

You are also clearly out of your league on this one...

Wed, 12/04/2013 - 10:19 | Link to Comment Keyser
Keyser's picture

"Do you know why WTI has gone up ~$3.50 in the past couple of days while Brent has been flat? If you don't, you really should simply STFU as you are polluting the thread with drivel..."

Fuck off dipshit, I've worked in the oil patch for 30 years. Besides, the topic of the thread is US exports, not WTI. 

As far as your reason, is this good enough?

http://www.bloomberg.com/news/2013-12-04/wti-oil-advances-a-fourth-day-as-u-s-crude-stockpiles-decline.html

 

Wed, 12/04/2013 - 10:26 | Link to Comment Flakmeister
Flakmeister's picture

Heh, heh, heh...

Just because you may have tossed a few pipes around doesn't mean you know shit about the macro stuff...

Let us know when you figure it out why.... Hint: google Marketlink LLC and Nederland TX...

And yes, Cushing stocks will be falling thereby driving up the price of oil in the Midwest...

BTW, Tyler had a serious brain fart, the link shows oil imports up 12.6 MM bbls for the month... Unlike a lot of dipshits here I actually verify information before swallowing it whole...

Wed, 12/04/2013 - 13:00 | Link to Comment NidStyles
NidStyles's picture

It's obvious you can't read either.

Wed, 12/04/2013 - 13:08 | Link to Comment Flakmeister
Flakmeister's picture

I see our resident Hydrocarbon moron has appeared...

Still claiming that propane is the same as LNG? Or was it CNG?

Wed, 12/04/2013 - 13:12 | Link to Comment falak pema
falak pema's picture

its all austrian to him.

Thu, 12/05/2013 - 00:52 | Link to Comment Matt
Matt's picture

That is wierd, the part that says exports, click it and the page it goes to is US oil IMPORTS.

Wed, 12/04/2013 - 10:02 | Link to Comment Occident Mortal
Occident Mortal's picture

Good work from the oil industry.

Kudos where it's due. This is real economic added value. Although maybe not sustainable over the long term it's still a good show.

Wed, 12/04/2013 - 10:25 | Link to Comment PP
PP's picture

you should count 5 billion Junk Bitcoin and AAA-ZZZ coin exported to China in Oct

Wed, 12/04/2013 - 10:36 | Link to Comment oddjob
oddjob's picture

crack 'n' frac provides a nice short term buzz.

Wed, 12/04/2013 - 10:16 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

I was driving through the Poconos last week and noticed some beautiful mountains and valleys that are all ready to be fracked and strip mined. God Bless America!

Wed, 12/04/2013 - 10:19 | Link to Comment Flakmeister
Flakmeister's picture

I passed a Haliburton truck near Mile Run and flipped him the bird on Monday...

Wed, 12/04/2013 - 11:59 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

What was that Sarah Palin saying again... "Drill, baby, drill!"

Is there not enough 'drilling' in her neck of the woods?

Wed, 12/04/2013 - 09:56 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

ok... now I'm thrown off?  Usually news like this sends gold & silver crashing wihtout pause.  why is it up?

Wed, 12/04/2013 - 09:59 | Link to Comment Bobbyrib
Bobbyrib's picture

Maybe because there is still a $40+B trade deficit?

Wed, 12/04/2013 - 09:59 | Link to Comment negative rates
negative rates's picture

Oh the trade deficit, we thought you were refering to the fiscal deficit. That will never decrease.

Wed, 12/04/2013 - 11:34 | Link to Comment Flakmeister
Flakmeister's picture

Yearly deficit is down roughly $500 billion from when Bush left office...

What color is the sky in your bubble?

Edit: Pretty clear there are least 3 misinformed fools here that do not know the difference between debt and deficit....

Wed, 12/04/2013 - 12:10 | Link to Comment odatruf
odatruf's picture

Flak - it is true that many don't understand many of the variables regarding federal budgeting. 

For me, even the deficit is pretty meaningless unless it is taken within the context of total spending. To wit: a government that spent $1 trillion and took in $800 billion looks the same deficit wise as a government that spent $3 trillion and took in $2.8 trillion, but they are very different governments. And of course, I’d vastly prefer the former.

Wed, 12/04/2013 - 12:18 | Link to Comment Flakmeister
Flakmeister's picture

I'll beg to differ...

The gubbmint spending $3T while taking in $2.8T has a better shot of balancing things than one spending $1T while taking in $0.8T...  In the latter, the imbalance is 20% of revenues while the former is 7%.....

BTW, it is not how much the government spends, it is what it spends it on that matters... but I digress....

Wed, 12/04/2013 - 10:01 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Our trading partners are sending us back those valuable FRNs in exchange for our oil. 

LOL

If that is not inflationary, then I don't know what is.

Wed, 12/04/2013 - 10:03 | Link to Comment Flakmeister
Flakmeister's picture

It is re-exports of refined products from imported oil..

And you should know better...

Wed, 12/04/2013 - 10:24 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

And you should know better...

http://www.zerohedge.com/contributed/2013-11-05/hockey-sticks-day

I am no geologist or petroleum engineer, but one might expect fracking
to lead to similiar crude oil production growth in more difficult
operating environments such as the GOM and Alaska.

Wed, 12/04/2013 - 10:27 | Link to Comment Flakmeister
Flakmeister's picture

Imports are down but they sure as hell ain't zero, not by a long shot...

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUS2&f=M

Wed, 12/04/2013 - 09:59 | Link to Comment Sudden Debt
Sudden Debt's picture

YEP! AMERICA IS OUT OF THE WOODS!!

 

Wed, 12/04/2013 - 09:59 | Link to Comment youngman
youngman's picture

How much was the bitcoin trade???

Wed, 12/04/2013 - 10:05 | Link to Comment falak pema
falak pema's picture

Lets get this picture right :

US IMPORTS 2.3 Billion barrels of crude (7 million barrels/ day eqvt.) ; down from 2005/6 peak of 3.7 billion barrels but still very high.

Whereas US exports refined products from its refineries.

Not the same thing... 

As for Bakken type shale its at 700 thousand BBL/D cumulative additional shale oil in local production, if my memory serves me right...We are talking about the shale oil contribution peaking at 2 million Barrels/day at peak, around 2020, when imports will have fallen to 6 million barrels/day.

The picture is brighter for shale gas exports from when LNG type facilities will allow its export along with more local industrial/electricity usage.

Wed, 12/04/2013 - 10:19 | Link to Comment Flakmeister
Flakmeister's picture

At least one other person here gets it...

And please call it tight oil.....

Wed, 12/04/2013 - 12:47 | Link to Comment falak pema
falak pema's picture

Its tight not because its drunk, but 'cos its from impermeable structures and 'cos its light and has condensate content; so volume BTU yield is 60% of that of conventional oil. We don't get as many bangs per gallon. 

Wed, 12/04/2013 - 13:11 | Link to Comment Flakmeister
Flakmeister's picture

The Bakken/Three Forks is legit light sweet crude, the Eagle Ford on the other hand is naptha rich and not really oil as you point out...

Wed, 12/04/2013 - 10:06 | Link to Comment My Days Are Get...
My Days Are Getting Fewer's picture

Simply stated:  There are fewer US Dollars in the float.  That is causing problems for nations, which need Dollars to pay their bills.

Wed, 12/04/2013 - 10:20 | Link to Comment Flakmeister
Flakmeister's picture

Tyler,

          are you really sure that that this link

http://www.census.gov/foreign-trade/statistics/historical/petr.pdf

 is what you had in mind when you said

"October petroleum exports ($12.5 billion) were the highest on record" 

It shows oil imports up ~12.6 MM barrels for the month...

Wed, 12/04/2013 - 10:20 | Link to Comment madcows
madcows's picture

it's been so long that all we've talked about is deficits and debts, that I forget what the opposite of that is...

Oh, wait, that's right.. It's SURPLUS.  Hell, we've got a surplus of deficit and debt.  If debt was money we'd be in the black, we'd be in the plaid.

Wed, 12/04/2013 - 10:27 | Link to Comment Quinvarius
Quinvarius's picture

In all fairness, the USD lost 5% of its value since July.  Nominal gains in GDP and exports will also be huge when a stick of gum is 1 million dollars.

Wed, 12/04/2013 - 10:31 | Link to Comment Flakmeister
Flakmeister's picture

5% relative to what?

Wed, 12/04/2013 - 11:56 | Link to Comment Vendetta
Vendetta's picture

relative to the value of a piece of paper

Wed, 12/04/2013 - 12:06 | Link to Comment Flakmeister
Flakmeister's picture

Care to elaborate a bit further for us?

Wed, 12/04/2013 - 11:05 | Link to Comment ThisIsBob
ThisIsBob's picture

Ship it all.  They will be begging for a release of strategic reserves soon enough.

Wed, 12/04/2013 - 11:10 | Link to Comment Flakmeister
Flakmeister's picture

The above ain't even funny let alone based on any semblance of reality...

Wed, 12/04/2013 - 11:25 | Link to Comment Clint Liquor
Clint Liquor's picture

There is no such thing as a 'Trade Deficit'! The world sends the USA it's raw materials, labor and manufacturing. The USA, in return sends back pieces of paper with pictures of dead presidents printed on it. No deficit. The world must see it as a fair trade as they continue after many years.

Wed, 12/04/2013 - 11:26 | Link to Comment Flakmeister
Flakmeister's picture

Never knew Franklin was a president....

Wed, 12/04/2013 - 12:15 | Link to Comment odatruf
odatruf's picture

He did serve as the President of the Supreme Executive Council for the Commonwealth of Pennsylvania.  So there's that.

Wed, 12/04/2013 - 12:19 | Link to Comment Flakmeister
Flakmeister's picture

Yeah... but that is not  quite what the above author was intimating....

Wed, 12/04/2013 - 12:50 | Link to Comment odatruf
odatruf's picture

True enough. And I only know that because I live in the only state with a meaningful Executive Council.

 

Wed, 12/04/2013 - 12:02 | Link to Comment Randoom Thought
Randoom Thought's picture

The only way for there to be a world reserve currency is to ensure there is enough circulating at any given time for people and countries to be dependent upon the currency. If the flow of dollars out of the US to the world stops then the dollar would like have to stop being the world reserve currency. Why did Ben Berstinkie have to bail out the EuroPEON banks with dollars? To keep them hooked on the juice. This is the problem bankers face with converting to a new global reserve currency ... the old momentum takes time to break... and must include the decrease in the export of dollars.

... oh, and since there is no free market and prices are SET through a monopolistic agreement of banks to promote their policies, under the current conditions the amount of oil in Cushing is irrelevant. Price (as well as visible supply) goes up and down as determined by those who control price and not by an invisible free-market hand.

Wed, 12/04/2013 - 12:09 | Link to Comment Flakmeister
Flakmeister's picture

Umm...

Can you provide evidence of what you claim? Or are you merely projecting?

I was under the impression that the WTI-Brent spread was driven by infrastructure being mismatched to new hydrocarbon flows...

Silly me...

Wed, 12/04/2013 - 12:17 | Link to Comment odatruf
odatruf's picture

It's always about the flow...

Wed, 12/04/2013 - 12:16 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

+42. Ding, ding, ding, ding, ding. We have a winner.

In a world where virtually everything of value is manipulated, your speculation skills are probably of greater value than almost anything. Assuming you want to "play" in their Casino at all.

Wed, 12/04/2013 - 12:34 | Link to Comment moneybots
moneybots's picture

"US Deficit Shrinks To $40.6 Billion As October Petroleum Exports Rise To New Record"

 

We import petroleum in order to export it?  How are we supposed to become energy independent if we export record amounts of petroleum?

Wed, 12/04/2013 - 12:45 | Link to Comment Flakmeister
Flakmeister's picture

Tyler screwed the pooch on this one...

His link shows imports were up 12.5 million barrels for the month and says nothing about exports....

Wed, 12/04/2013 - 12:56 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Refining is what made Rockefeller obscenely rich and powerful. It's still working.

Due to (deliberate!) "environmental" reasons, refining capacities in the US are very restricted and largely based on the Gulf. Works like a charm for those Oligarchs with monopoly ambitions/abilities.

Wed, 12/04/2013 - 12:48 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

OK, I'll be the first to admit that I know nothing about the oil or energy markets (I'm a junior economist, Jim, not an oil expert), but why the hell are we exporting oil instead of refining it here and keeping it here, lowering our prices at the pump to, say, maybe $2/gallon.

Back in some far-away parallel universe, I suppose, competitive advantage used to be a source of national pride. Apparently, that ancient relic of "nationalism" escapes our elected officials and oil company executives.

This country was built on cheap oil. Now we ar destroying it with expensive oil, even though we could starve other countries by hoarding our own.

Unless my ignorance of the oil industry has entirely clouded my viewpoint, I'd say the oil companies are only interested in returning massive profits to their shareholders and members of congress are likely some of the biggest ones. The congress people should all be shackled, tortured, burned, hung and then guillotined for their betrayal of the constitution and the interests of their country.

Fuck all of them. If it's drilled here or fracked here, it should STAY here. I'm sick and tired of $3.50+++ gas. Seriously, if China could drill all the oil they needed, what do you think they'd do with it?

-Pissed

Wed, 12/04/2013 - 13:07 | Link to Comment Flakmeister
Flakmeister's picture

You can start here:

http://www.eia.gov/petroleum/data.cfm#imports

There are no shortage of people with interests that rely on the American population remaining clueless despite the fact that the truth is out in the open. They sow confusion to their own benefit...

The reality is that exports of crude oil are illegal except for the case where the company replaces exports by an equivalent amount of import. It stems from the fact that when the TAPS was running flat out, the refining capacity of the West Coast could not handle all the flow so a few percent was exported to Japan. Chevron was required to replace those flows and they did, on the Gulf coast....

Wed, 12/04/2013 - 13:14 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

Flak, thanks for the info and link. Obviously, I have much to learn.

Wed, 12/04/2013 - 12:55 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

And just how in hell are we running a trade deficit with Ireland?

WTF?

Wed, 12/04/2013 - 23:56 | Link to Comment mkhs
mkhs's picture

Off shore tax manipulation.  All the big names do it.

Thu, 12/05/2013 - 01:44 | Link to Comment Matt
Matt's picture

Well, what do you import from Ireland besides whiskey and baileys?

Wed, 12/04/2013 - 13:44 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Look at the last graph (China-US trade): nice dip every January/February for years.  THIS IS AN "ECONOMY"??? ~ It's all plastic Christmas shit...

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