Chinese refiners have slashed US oil purchases by 90% while importing record volumes of Canadian crude, as trade tensions between the world’s two largest economies continue to worsen.
Chinese crude imports from Canada hit an unprecedented 7.3 million barrels in March and are expected to exceed that figure in April, according to data from Vortexa Ltd, which tracks waterborne oil shipments. Simultaneously, Chinese imports of US oil have collapsed to approximately 3 million barrels monthly from a June 2024 peak of 29 million barrels.
“Given the trade war, it’s unlikely for China to import more US oil,” Wenran Jiang, president of the Canada-China Energy & Environment Forum, told Bloomberg. “They are not going to bank on Russian alone or Middle Eastern alone. Anything from Canada will be welcome news.”
Related: China’s Export Cutoff May Lead To Rare Earth Rush, US Scrambles for Seabed Minerals
The shift gained momentum following the Trans Mountain Pipeline expansion that began delivering Albertan oil to British Columbia’s Pacific coast last May, providing Chinese and other East Asian importers with improved access to Canada’s vast oil reserves.
Industry analysts note Canadian oil sands provide relatively cheap, dense, high-sulfur crude grades that China’s sophisticated refineries are equipped to process, making it an attractive alternative to similar but more expensive Middle Eastern grades like Iraq’s Basrah Heavy.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The West Needs To Level The Playing Field To Compete With China
Access to the raw materials of the new green economy is increasingly a high-stakes chess...