Chinese refiners are importing record amounts of Canadian crude oil after slashing their purchases of U.S. energy products by 90% amid an escalating trade war.
America’s loss appears to be Canada’s gain as China sources more crude oil from Alberta’s oilsands region.
Chinese crude imports from the Port of Vancouver soared to a record 7.3 million barrels in March of this year and have accelerated even more in April as Beijing feuds with Washington, D.C. in an escalating tit-for-tat trade war.
Data from Vortexa, which tracks oil and natural-gas shipments, shows that Chinese imports of U.S. crude oil have dropped to three million barrels a month from a peak of 29 million barrels in June of last year.
Canada’s crude oil sector, which is a major driver of the national economy, stands to continue benefitting from Chinese demand given that China is the world’s biggest importer of crude oil.
The expansion of the Trans Mountain Pipeline that carries crude from Alberta to the port of Vancouver on the West Coast has only made it easier for China to source Canadian crude.
Chinese officials have said in recent weeks that oil sourced from Canada is seen as more attractive and reliable than crude bought from either the U.S. or Russia.
Canada also benefits from the fact that its oil is comparatively cheap to buy when compared to crude sold from the Middle East and other regions.
Brent crude oil, the international benchmark, is currently trading at $66.63 U.S. per barrel.
