The U.S. trade deficit narrowed more than expected in November as oil prices eased and exports expanded.

The U.S. Commerce Department said today the U.S. deficit in international trade of goods and services fell 5.8% to US$64.21 billion from a revised record high of US$68.13 billion in October.

Overall imports dropped 1.1% to US$173.51 billion. Exports advanced 1.8% to US$109.31 billion in November from US$107.38 billion in October.

In November, crude oil prices retreated and overall demand for energy products weakened. Meanwhile, exports of airplanes and other capital goods boosted exports during November.

Purchases of industrial materials from overseas fell US$1.24 billion, pushed lower by fuel oil, natural gas and chemical fertilizers.

Exports of capital goods including civilian aircraft, railway equipment, and excavating machinery rose by US$1.15 billion, and foreign sales of autos and parts rose US$171 million.

The strong exports helped pushed deficits with major trading partners mostly lower in November. The shortfall with China decreased for the first time in seven months to US$18.49 billion from a record US$20.52 billion in October. The deficit with Japan narrowed to US$7.28 billion from US$7.36 billion, while the gap with the euro area fell to US$7.7 billion from US$8.79 billion. The deficit with Canada narrowed to US$7.53 billion from US$8.21 billion and the monthly shortfall with Mexico decreased to US$4.57 billion from US$4.79 billion.

Separately, import prices dropped 0.2% in December after falling a revised 1.8% in November, the Labor Department said today.

Meanwhile, initial jobless claims increased by 17,000 to a seasonally adjusted level of 309,000 in the week ended Jan. 7, the Labor Department said.