Crude surge widens trade gap

Crude surge widens trade gap
The trade deficit rose by 67% to $15 billion in May 2011 against $8.9 billion in April 2011 as a result of the instability in the overseas crude prices whereas the exports rose 56.9% to $25.9 billion and imports grew 54.1% to $40.9 billion in May 2011.

Commerce Minister, Anand Sharma said that the government is worried over this issue and it is mainly due to the petroleum prices that have surged because of several factors like the developments of the last few months in West Asia.

He also said that they will carry on with a strong performance so that the present account deficit can be kept controllable.

The global crude prices showed signs of softening in May 2011 after surging to $120 per barrel in April 2011.

Commerce secretary Rahul Khullar said that the export items that did quite well are engineering, petroleum and electronic products while the oil and gold imports rose in turn leading to the high deficit.

Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling.

Read more about: economy, crude, oil and gas
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