(Update) Japan Oct. Trade Surplus Falls for 7th Month on High Oil Prices

Tokyo, Nov. 24 (Jiji Press)–Japan’s customs-cleared trade surplus posted the seventh straight year-on-year decline in October, as higher crude oil prices continued to lift the value of oil imports, the Finance Ministry said Thursday.

The nation’s trade surplus totaled 822.1 billion yen, down 28.8 pct from a year before, the ministry said in a preliminary report. The surplus was smaller than the median forecast of 880.8 billion yen by 17 research institutes polled by Jiji Press.

Imports gained 17.8 pct to 5,087.7 billion yen, the 20th consecutive increase. Exports grew 8.0 pct to 5,909.9 billion yen, rising for the 23rd straight month. The October imports and exports both stood highest on record.

Crude oil imports soared 49.5 pct, making a 6.6-percentage-point contribution to the overall import increase in value. The average crude oil price on a customs-cleared basis came to a record high of 59.9 dollars per barrel in October, up 50 pct from the same month a year earlier, according to the ministry.

But the average oil price is believed to have peaked out already, since prices of benchmark Dubai crude oil turned to fall, a ministry official said.

Meanwhile, exports were hoisted by brisk shipments of automobiles to the United States and steel products to other parts of Asia.

By region, Japan’s surplus in trade with the United States went up 20.9 pct to 738.2 billion yen, rising for nine months in a row.

Exports to the United States climbed 8.9 pct to 1,340.9 billion yen, while imports dropped 3.0 pct to 602.8 billion yen, reflecting decreased demand for U.S. aircraft.

In trade with mainland China, Japan’s deficit expanded 29.2 pct to 218.5 billion yen. Exports gained 12.8 pct to a record 831.9 billion yen, and imports from the country scored a larger growth of 15.8 pct to 1,050.4 billion yen.

Japan’s trade surplus with its all Asian trade partners, including China, dropped 11.2 pct to 609.9 billion yen.END