U.S. trade deficit reaches $60 billion

WASHINGTON, July 12 (UPI) -- The U.S. deficit on trade in goods and services in May reached $60 billion, up from $57.8 billion a month earlier, a report said Thursday.

Petroleum, trade with China and automotive products accounted for about 91 percent of the trade deficit, the U.S. Commerce Department said.

Oil prices rose $23.9 billion in May, compared with $22.4 billion in April. The trade deficit on non-petroleum products increased to $42.7 from $42.4 billion.

The trade deficit with China increased to $20.billion in May from $19.4 billion in April.

The deficit on automotive products fell to $9 billion in May from $10.1 billion in April.

Since December 2001, the U.S. monthly trade deficit has increased $33.4 billion, the report said, blamed largely on dysfunctional energy policies and the overvalued dollar against the Chinese yuan.