WASHINGTON — The United States trade deficit shrank in the second quarter to its lowest level in 6-1/2 years, the Commerce Department reported Aug. 28. The total deficit on trade with the rest of the world fell from $26.3 billion in the first three months of 1990 to $22.6 billion. The 14 percent drop was aided by cheap imported oil prior to Iraq's invasion of Kuwait. The Commerce Department said average imported oil prices fell during the second quarter to $15.81 a barrel from $19.47 in the first quarter of 1990 - a price level that is unlikely to be repeated.
Second-quarter exports reached a record $96.7 billion.