NEW YORK — Citigroup Inc. is removing one of the irritants in its relationship with the government, its Phibro commodities trading unit that is paying one trader an estimated $100 million this year.

The deal announced yesterday carries a tradeoff for Citigroup: While the $250 million sale to Occidental Petroleum Corp. means a bit less government scrutiny, it also means the bank is losing hundreds of millions of dollars in annual income that could help repay $49 billion in bailout money.

Phibro, which makes most of its money through oil and natural gas trades, earned an average $371 million annually during the past five years. Citigroup sold it for about $250 million, which means Occidental could recoup its investment in less than a year.

TRADE DEFICIT POSTS UNEXPECTED DECLINE

WASHINGTON — The U.S. trade deficit unexpectedly narrowed in August as exports posted a small gain, while imports fell on a big drop in demand for foreign oil.

The fourth straight rise in exports was an encouraging sign that the global economy has started to recover from a severe recession that began in the United States and quickly spread to other parts of the world. But many economists expect the deficit to rise in coming months on the back of a rebounding U.S. economy, which will start importing more foreign products.

The Commerce Department said the trade deficit declined 3.5 percent to $30.7 billion.

MORE UNEMPLOYED VYING FOR SAME JOB

WASHINGTON — The number of job seekers competing for each opening has reached the highest point since the recession began, according to government data released yesterday.

The employment crisis is expected to worsen as companies stay reluctant to hire. Many economists expect a jobless recovery, putting pressure on President Obama and congressional Democrats to stimulate job creation.

There are about 6.3 unemployed workers competing, on average, for each job opening, a Labor Department report shows. That's the most since the department began tracking job openings nine years ago, and up from only 1.7 workers when the recession began in December 2007. The highest point after the 2001 recession was 2.8 workers per opening in July 2003, as the economy suffered through a jobless recovery.