China has dramatically increased its imports of Canadian crude oil, slashing purchases from the United States by nearly 90% as trade tensions between the two global powers escalate.
According to energy tracking firm Vortexa Ltd., cited by Bloomberg, Chinese refiners imported a record 7.3 million barrels of Canadian crude in March, with shipments expected to surpass that figure in April.
The oil is transported from Alberta’s vast oilsands to the Pacific coast through the recently expanded Trans Mountain Pipeline (TMX), which began operations in May of last year.
The TMX project, which carries crude from Alberta to a shipping terminal near Vancouver, has provided China and other East Asian buyers with new, more direct access to Canada’s dense, high-sulfur oil — a grade well-suited to China's sophisticated refineries.
At the same time, China's imports of US oil have plunged, dropping from a peak of 29 million barrels in June to just 3 million barrels a month. The shift highlights the wider strategic and economic fallout from US President Donald Trump's confrontational trade policies, which have reshaped global supply chains and trading patterns.
“Given the trade war, it’s unlikely for China to import more US oil,” said Wenran Jiang, president of the Canada-China Energy & Environment Forum, in a phone interview. “They are not going to bank on Russian alone or Middle Eastern alone. Anything from Canada will be welcome news.”
Although Canadian oil still represents a relatively small portion of China’s overall crude imports compared to supplies from the Middle East and Russia, its appeal lies in both economics and compatibility. Alberta’s heavy crude, similar in composition to Iraq’s Basrah Heavy, offers a lower-cost alternative for Asian refiners, particularly as Middle Eastern grades are increasingly priced at a premium due to a strong Dubai benchmark.
With the US-China trade war showing no signs of resolution, Canada’s position as a reliable and strategically beneficial energy partner for China appears increasingly solidified.
By Tamilla Hasanova
Source: caliber.az
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