China Imports Record Amounts of Canadian Oil, Cuts US Purchases

April 17, 2025 — As trade tensions between China and the United States show no signs of easing, Beijing has significantly altered its energy procurement strategy, shifting away from American oil in favour of Canadian crude. The move marks a decisive turn in China’s energy diplomacy, and underlines its commitment to diversifying energy sources amid growing geopolitical uncertainty.

According to industry data from energy analytics firm Vortexa Ltd., China imported approximately 7.3 million barrels of crude oil from Canada in March 2025—mostly shipped from the port of Vancouver. That marks a record high and a dramatic shift compared to the United States, from which China has slashed oil imports by nearly 90%, down to just 3 million barrels a month from a peak of 29 million in mid-2024.

This development coincides with the expansion of a major Canadian oil pipeline, providing greater access to Alberta’s vast oilsands reserves. This infrastructure project has allowed for a more efficient and consistent flow of oil to Asian markets, making Canadian crude an increasingly attractive option for China and other East Asian importers.

Energy Politics Redefined by Trade War

The decline in US oil exports to China comes amid an intensifying trade dispute between the world’s two largest economies. Tariffs and retaliatory sanctions have taken their toll across various sectors, but the energy industry—often a cornerstone of international trade—is now clearly feeling the effects.

“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, speaking to Bloomberg. “They are not going to rely on Russia or the Middle East alone. Anything from Canada will be welcome news.”

China's strategy is twofold: avoid further economic entanglement with the United States while securing reliable and affordable energy alternatives. The price factor is also central to China’s pivot. Crude oil from Alberta is currently priced competitively when compared to Middle Eastern supplies, further incentivising the shift.

Strategic Realignment with Canada and BRICS Influence

China’s growing partnership with Canada in the oil sector also signals a broader strategic realignment. Canada, having experienced its own share of trade tensions with the US—particularly regarding aluminium, lumber, and dairy exports—now finds common ground with China in pursuing alternative markets and diplomatic leverage.

China’s reorientation toward BRICS-aligned or sympathetic nations has added another dimension to its energy policy. The recent diplomatic engagements between Chinese officials and Canadian trade representatives suggest a coordinated effort to establish a long-term energy alliance that reduces both countries’ reliance on volatile US policy.

This approach appears to be paying off. The expanded Trans Mountain Pipeline, running from Alberta to British Columbia’s coast, has played a crucial role in enabling these exports. With increased capacity and logistical support at the Vancouver terminal, China now has a stable and scalable route to access Canadian oil.

A Market Under Pressure Despite Strategic Moves

Despite the boost in Canadian oil shipments to Asia, the global oil market remains under pressure. Earlier this month, the International Energy Agency (IEA) revised its global oil consumption forecast downward, citing sluggish industrial demand, growing renewable energy penetration, and signs of an economic slowdown in major markets.

Simultaneously, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies unexpectedly announced production increases, adding to the supply glut and complicating market dynamics. For China, this creates both a challenge and an opportunity. On the one hand, falling global demand could depress prices. On the other, it strengthens China’s bargaining power as one of the largest importers of crude.

Meanwhile, oil futures briefly surged after reports suggested that China might resume trade talks with the United States. However, those hopes were short-lived. Negotiations appear to have stalled once again, reinforcing the perception that China is now fully committed to finding long-term alternatives to US commodities.

Supply Chain Resilience and the Alberta Advantage

Beyond pricing and politics, logistical reliability is a critical factor in China’s preference for Canadian oil. Alberta’s oilsands region contains one of the world’s largest known crude reserves, and recent infrastructure investments have made the extraction and transportation process more efficient.

Canadian oil is also regarded as geopolitically stable—a crucial consideration for a country like China, which seeks to avoid energy disruptions caused by conflict in the Middle East or sanctions affecting Russian supply lines. While Russia remains a major supplier, China appears unwilling to place all its strategic bets on one partner.

China’s investment in diversified supply chains is part of a broader plan to enhance national energy security. This includes not only long-term contracts with countries like Canada but also expanding domestic refining capacity, building strategic reserves, and developing renewable alternatives to fossil fuels.

Looking Ahead: The Future of Sino-Canadian Energy Cooperation

Analysts believe that the surge in Canadian oil exports to China may be just the beginning of a more extensive economic partnership. In the coming months, bilateral agreements on LNG (liquefied natural gas), green energy technology, and environmental standards may follow, further strengthening ties between the two nations.

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— Watcher.Guru (@WatcherGuru) April 16, 2025

For Canada, increased demand from China could boost its energy sector and offset losses incurred from past pipeline cancellations and US market fluctuations. For China, the shift allows for a greater level of autonomy and risk mitigation in a time of global instability.

As trade friction reshapes traditional alliances, countries like Canada and China are discovering new opportunities to cooperate outside the orbit of US influence. With energy security becoming a cornerstone of national policy, these evolving dynamics are likely to play a decisive role in shaping global oil flows in the years ahead.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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