The UK trade gap widened further in July after oil imports outstripped exports for the first time in 13 years, official data showed today.

The Office for National Statistics (ONS) said the deficit on trade in goods deteriorated to £5.2 billion in July from £5.1 billion in the previous month.

But a surplus in the trade in services of £1.5 billion reduced the overall deficit figure for July to £3.7 billion - against a revised £3.4 billion in the previous month.

The news sparked a fall in the value of the pound amid fears that the UK was losing its status at a net oil exporter.

According to the ONS, the value of oil supplies brought in from overseas in July was £61 million higher than exports.

Investec economist Philip Shaw said this reflected the fact the UK economy was growing and UK was failing to pump enough crude to keep pace.

At the same time there was less oil now in many of the major North Sea fields and UK operators were having to tap sites with smaller reserves, he said.

"It means Britain's oil production is past its peak," Mr Shaw said.

Friday September 10, 2004