Petroleum prices have risen sharply since early 2004. At the same time the average amount of imports of energy-related petroleum products has fallen slightly. The combination of sharply rising prices and a slightly lower level of imports of energy-related petroleum products translates into an escalating cost for those imports. This rising cost added an estimated $70 billion to the nation's trade deficit in 2005 and could add $80-$100 billion in 2006, depending on how sustainable is the rate of recent price increases. This report provides an estimate of the initial impact of the rising oil prices on the nation's merchandise trade deficit.

Petroleum prices have risen sharply since early 2005. At the same time, the average level of imports of energy-related petroleum products has fallen slightly. The combination of sharply rising prices and a slightly lower level of imports of energy-related petroleum products translates into an escalating cost for those imports. This rising cost added an estimated $70 billion to the nation's trade deficit in 2005 and could add another $60 to $70 billion in 2006, depending on the course of energy import prices over the remainder of 2006. This report provides an estimate of the initial impact of rising oil prices on the nation's merchandise trade deficit. The report will be updated as warranted by events.

This report analyzes the relationship between the dollar and the price of oil and how the two might interact. This report provides an assessment of the impact a range of prices of imported oil could have on the U.S. trade deficit.

This report provides an estimate of the initial impact of the changing oil prices on the nation's merchandise trade balance.

Rapid changes in the price of oil and the impact of such price changes on economies around the globe have attracted considerable attention. In mid-2008 as the price of oil rose to unprecedented heights and then dropped sharply, the international exchange value of the dollar fell and then rose relative to a broad basket of currencies. For some, these two events seem to indicate a cause and effect relationship between changes in the price of oil and changes in the value of the dollar. Despite common perceptions that there is a direct cause and effect relationship between changes in the international exchange value of the dollar and the price of oil, an analysis of data during recent periods indicates that changes in the price of oil are driven by changes in the demand for oil that is different from the supply of oil, rather than changes in the value of the dollar. The rapid increase in oil prices in early 2011 reflects rising demand for oil and other commodities and uncertainty in global markets keyed to political turmoil in North Africa and the Middle East. This report analyzes the relationship between the dollar and the price of oil and how ...