-China’s U.S. crude imports down 90% from peak levels
-Canadian crude imports hit a record 7.3 million barrels in March
-TMX expansion enhances Canada-Asia oil transport routes
-Canadian heavy crude offers a price advantage over Middle Eastern alternatives
Opinion
China’s pivot is more than just a tactical trade adjustment—it reflects a broader strategy to build economic ties beyond the U.S., challenging America’s traditional dominance in global energy markets. By strengthening partnerships with countries like Canada, China is proactively restructuring the global supply chain.
Core Sell Point
If China continues expanding its non-U.S. energy alliances, U.S. energy exporters could face long-term earnings pressure and valuation risks.
China has slashed crude oil imports from the U.S. by nearly 90% while simultaneously boosting imports from Canada to record levels, according to Vortexa data. In March alone, China imported 7.3 million barrels of oil from British Columbia ports, marking the highest monthly volume on record.
This shift is largely seen as a response to escalating U.S.-China trade tensions and the Trump administration’s aggressive tariff policies. The completion of the Trans Mountain Pipeline Expansion (TMX) has improved access to Canada's western oil sands, enabling China to diversify its energy supply lines away from the U.S. Notably, Chinese imports of U.S. crude have plummeted from a peak of 29 million barrels per month in June 2024 to just 3 million barrels.
Beyond simple substitution, China appears to be strategically broadening its economic ties with non-U.S. energy partners, reducing reliance on traditional suppliers like Russia and the Middle East. Canadian heavy crude offers a cost-effective alternative to Middle Eastern oil, making it an attractive option for Asia's advanced refining infrastructure. This evolving trade pattern could significantly reshape the global energy landscape and diminish America's influence over global energy flows.
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