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Canadian oil shipments to China are surging as the country shuns U.S. crude amid an intensifying trade dispute
By Robert Tuttle
Canadian oil exports to China are on pace for a record month amid a surge of purchases as the Asian giant pivots away from United States crude.
Almost 5 million barrels have been shipped out of Vancouver so far in October, a record for the first 15 days of any month, according to Vortexa ship tracking data.
Chinese buyers were recently stockpiling more than half a million barrels a day of foreign crude to take advantage of steep price discounts for Russian and Iranian oil amid growing U.S. pressure to economically hobble those nations.
More than 70 per cent of oil-laden vessels departing the British Columbia port have sailed for China, according to the data. The remainder headed for the U.S. West Coast, an area off Los Angeles where cargoes typically are offloaded to larger tankers for shipment elsewhere, or had no listed destination.
Canadian oil shipments to China are surging as the country shuns U.S. crude amid an intensifying trade dispute between the world’s two largest economies. China recently imposed retaliatory port fees on U.S.-linked vessels, increasing freight rates to haul American crude to Asia.
Vancouver crude is trading at a premium to Canadian barrels piped down to Texas ports for the first since at least September 2024, according to Argus. Comparable heavy grades from the Middle East have grown more expensive in recent months relative to Brent, the global benchmark, even as OPEC+ boosts output.
Bloomberg.com
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