The U.S. trade deficit narrowed May as the price of oil slipped and exports increased, but resurgent oil costs pushed import prices higher in June.

The U.S. Commerce Department said today that the U.S. deficit in international trade of goods and services shrank 2.7% to US$55.35 billion from a slightly revisedUS$56.90 billion in April.

The April gap was previously reported at $56.96 billion. Exports inched up in May, rising 0.1%, while imports slid 0.9%.

But the improved balance of trade was likely to be temporary. A separate report from the U.S. Labor Department showed import prices rose 1% in June as crude-oil prices on the New York Mercantile Exchange climbed over US$60 a barrel. Petroleum prices shot up 7.6% after a 4.8% decline in May.

The U.S. trade imbalance so far this year is running at an annual rate of US$681.6 billion, 10% higher than last year’s record deficit of US$617.6 billion.

The trade deficit with China rose 7.1% to US$15.8 billion.

Deficits with other major trading partners were mixed: the deficit with Japan fell to US$6.58 billion from US$7.18 billion, while the trade gap with the euro area increased to US$8.12 billion from US$6.93 billion.

The deficit with Canada shrank to US$4.75 billion from US$5.40 billion and the gap with Mexico rose to US$4.48 billion from US$4.40 billion.