The U.S. trade deficit widened much more than expected in July as average oil prices jumped to a record $124.66 per barrel and the volume of crude oil imports grew to the highest in four years.

The monthly trade gap swelled to $62.2 billion US, the largest since March 2007, from an upwardly revised estimate of $58.84 billion in June. Wall Street analysts had forecast the deficit to expand to $58.0 billion from the original June tally of $56.8 billion.
    
As crude oil prices surged in July, the volume of oil imports jumped 15 percent to 342 million barrels, the highest since June 2004 even though prices were almost double the average of last July.
   
Total petroleum imports hit a record $51.4 billion, helping lift overall imports of goods and services 3.9 percent to a record $230.3 billion.
   
Imports of autos and consumer goods declined slightly in July and two other categories — food, feeds and beverages and capital goods — rose only slightly in a sign that the weak U.S. economy is crimping demand for foreign goods.
   
Reflecting the larger role oil is playing in the trade deficit, the non-petroleum deficit shrank to its lowest level since October 2002, while the petroleum deficit hit a record $43.4 billion.
   
Exports of U.S. goods and services increased 3.3 percent to a record $168.1 billion, with industrial supplies and materials, capital goods, autos and auto parts, and consumer goods all setting individual records.
   
In line with the higher oil prices, the U.S. trade deficit with Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries was a record $24.2 billion.
  
The trade gap with China widened 16.1 percent to $24.9 billion and remained slightly ahead of last year's record pace.