UK oil imports outstrip exports

The status of the UK as an oil exporter was dealt a new blow today by data showing that the economy again relied on imports of crude in September.

Not since records began a quarter of a century ago has the UK shipped in more oil than it sold overseas for two months in a row, the Office for National Statistics (ONS) said.

Imports outstripped exports of oil to the tune of £200m (€296m) in September - following a deficit of £500m (€740m) during the previous month.

Maintenance to rigs was again behind the gap in trade in oil, although the ONS said less repair work was taking place in the North Sea compared with August. Efforts to pump oil from one field were also affected by a major fire.

The ONS said the overall gap in the trade of goods narrowed to £5.4bn (€7.9bn) in September from a revised figure of £5.9bn (€8.7bn) for the previous month, which analysts said was in line with expectations.

Today’s data also suggested that the shoots of recovery in key economies in the EU were not benefiting the UK economy so far.

The trade deficit with EU countries widened to £3.1bn (€4.5bn) in September from £2.8bn (€4.1bn) in the previous month, with exports to France, Germany and Spain all in decline.

Compared with a 3% fall in exports to all EU countries, goods shipped to the rest of the world were up 9% during September.

HSBC economist John Butler said: “The one area of big weakness for the UK remains the eurozone.”

The surplus on trade in services recovered to £1.6bn (€2.3bn) in September after the potential payouts by Lloyd’s of London insurers for damage caused by Hurricane Katrina wiped £1.4bn (€2bn) from the figures a month earlier.

This meant that the overall trade deficit narrowed to £3.9bn (€5.7bn) from a record £5.6bn (€8.2bn) in August.