The US trade balance (deficit) for November, 2015 fell 4.9% to $42.4 billion from $44.6 billion in October, 2015 because of a high import decline (-1.7%) and a small export drop (-0.9%). Year to date, the trade deficit has increased 5.5% from the same period in 2014 as result of a stronger dollar, falling oil prices and a slowdown in China.
Crude Oil fell 10.8% this week to close at $33.06 per barrel despite rising geopolitical tensions in the Middle East. Commercial crude oil inventories (excluding the Strategic Petroleum Reserve) fell 1% to 482.3 million barrels in the week ended January 1 from 487.4 million the previous week. However, the national average retail regular gasoline price fell 0.3% to $2.028 from $2.034 per gallon the preceding week.
Initial unemployment claims fell 3.6% last week to 277,000 from 287,000 the previous week while continuing claims rose by 25,000 to 2,230,000. The four week moving average for new claims is also down this week breaking its two-month rally. Overall, both continued claims and initial claims have declined significantly their highs at the beginning of 2015.
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