Canada’s trade surplus fell to $3.8 billion in October, down sharply from September’s revised reading of $4.54 billion as energy exports declined, Statistics Canada said today.

Canadian companies exported merchandise worth $37.3 billion in October. Imports equaled $33.5 billion for the month.

Exports fell for a second month, down 1.7% after a 1.8% drop in September.

Energy exports fell 11.5% in October as the price of natural gas and the volume of refined petroleum products fell. Imports rose a modest 0.4%.

As a result of the drop in energy prices, coupled with weaker automotive and forestry exports, exports to the United States reached $28.5 billion, their lowest level in nearly two years, and the surplus with the U.S. fell to $6.8 billion, its lowest level in three years.