* Largest 1-month drop since Dec 2001
* Smallest deficit since August 2005
* More than $5 bln smaller than consensus
* Industrial supplies imports fall $5.2 bln
In the last two months, the trade gap has narrowed by 14.6% or nearly $10 bln.In October, export growth (+0.2%) was the slowest in three months but imports fell by 2.7%, the most in nearly five years. Imports of industrial supplies (read oil) fell by $5.2 bln, conveniently explaining the larger than expected drop in the deficit. Crude oil imports fell by $3.47 bln, far more than expected and at a dubious price, valued at roughly $55 per barrel.
Nevertheless, the ex-petroleum balance improved as well, to the smallest deficit in four months. The share of the deficit owing to petroleum fell to 31.9% in October, a 16-month low.
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