Canadian Oil Floods Chinese Ports as Demand for US Crude Declines
Canadian crude exports to China are heading for a record this month as Beijing increases purchases and turns away from US oil.
Tracking data show about five million barrels were shipped from Vancouver by mid-month, the highest volume recorded in the first 15 days of any month.
Chinese buyers have been storing more than 500,000 barrels per day of foreign crude, taking advantage of deep discounts on Russian and Iranian grades while the United States steps up economic pressure on both producers.
More than 70 percent of tankers leaving British Columbia ports sailed to China, with the rest bound for the US West Coast or yet to declare destinations.
The shift reflects China’s reluctance to buy American crude amid escalating trade tensions and retaliatory fees that raised shipping costs to Asia.
Canadian barrels loaded in Vancouver have also traded at a premium to pipeline deliveries to Texas for the first time since 2024, while Middle Eastern heavy grades have strengthened despite higher OPEC+ output.
Tracking data show about five million barrels were shipped from Vancouver by mid-month, the highest volume recorded in the first 15 days of any month.
Chinese buyers have been storing more than 500,000 barrels per day of foreign crude, taking advantage of deep discounts on Russian and Iranian grades while the United States steps up economic pressure on both producers.
More than 70 percent of tankers leaving British Columbia ports sailed to China, with the rest bound for the US West Coast or yet to declare destinations.
The shift reflects China’s reluctance to buy American crude amid escalating trade tensions and retaliatory fees that raised shipping costs to Asia.
Canadian barrels loaded in Vancouver have also traded at a premium to pipeline deliveries to Texas for the first time since 2024, while Middle Eastern heavy grades have strengthened despite higher OPEC+ output.
