Record petroleum exports helped shrink the U.S. trade deficit in December to the smallest in almost three years as America moved closer to energy self- sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo.

The gap narrowed 20.7 percent to $38.5 billion, the smallest since January 2010 and lower than any estimate in a Bloomberg survey of 73 economists, Commerce Department figures showed today in Washington. Oil exports climbed $11.6 billion. Another report showed wholesale inventories unexpectedly declined in December.

In addition to trimming the trade deficit, greater fuel autonomy helps boost household incomes, jobs and government revenue and makes American companies more competitive. An improving global economy, reflected by record exports to South and Central America, also means manufacturers such as Caterpillar Inc. will benefit.

“The trend toward energy independence is there, and it is picking up,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston with more than 30 years of experience in refining and trading. “This bodes well for our economy. As our oil production increases, our reliance on other parts of the world for oil comes down.”
...