U.S. Trade Gap Shrinks 21% as Oil Exports Surge

America's trade deficit narrowed to $38.5 billion in December from $48.6 billion in November, the Dept. of Commerce reports. Record-high petroleum exports helped make last month's trade gap the smallest in almost three years.

Economists say the trade data show that the U.S. economy was stronger in the fourth quarter than the Commerce Dept.'s initial estimate of a 0.1% contraction.

December exports rose 2% from November to $186.4 billion last month. Petroleum exports climbed 9% to $11.6 billion. Exports of autos and auto parts dipped 2% to $12 billion.

Imports fell 3% to $224.9 billion last month, including an 11% drop in petroleum purchases to $30.3 billion. Auto imports declined 4% to $24.5 billion.

For the full year, the trade deficit shrank to $540.4 billion from $559.9 billion in 2011. Exports advanced 4% to a record $2.20 trillion. Imports increased 3% to $2.74 trillion.

In 2012, auto exports increased 10% to a record $146 billion. Auto imports jumped 17% to $297.7 billion.

Full-year petroleum exports climbed 9% to $123.8 billion. Oil imports oil fell 6% to $415.1 billion, the lowest level since 1997. The U.S. supplied 84% of its own energy needs in the first 10 months of last year, according to the Energy Information Administration.

The country's trade gap with China swelled to a record-high $315.1 billion in 2012.