China Substituting US Oil for Canadian, According to Bloomberg
China has reportedly cut its purchases of American crude oil by 90% amid ongoing tensions in the tariff war with the United States, as highlighted by a Bloomberg report on Wednesday. Over the last two months, Washington and Beijing have enacted...
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China has reportedly cut its purchases of American crude oil by 90% amid ongoing tensions in the tariff war with the United States, as highlighted by a Bloomberg report on Wednesday.
Over the last two months, Washington and Beijing have enacted a series of reciprocal tariff increases, leading China to significantly reduce its imports of US oil. Previously, Chinese officials stated that they would refrain from imposing further tariff hikes on US goods, opting instead for alternative methods of retaliation.
According to data from the London-based oil and gas cargo tracking firm Vortexa Ltd., Chinese crude imports from a port near Vancouver on Canada's Pacific coast surged to an all-time high of 7.3 million barrels in March, with expectations that this figure may be surpassed in the current month. In contrast, China's imports of US oil have plummeted to 3 million barrels per month, down from a peak of 29 million barrels last June.
Historically, China's direct imports of Canadian crude oil have been limited, largely due to infrastructure issues, with Chinese refineries primarily obtaining crude from the Middle East and Russia. Last year, US crude accounted for approximately 1.7% of China's total crude imports, a decrease from 2.5% in 2023, according to customs data.
The majority of Canada's oil has traditionally been sent to the US for processing or re-export to Asia. However, the completion of the Trans Mountain Expansion pipeline in May 2023 has provided Canada with an alternative route to export larger volumes directly, mainly to Asian markets, thereby minimizing its dependence on the US.
“Given the trade war, it’s unlikely for China to import more US oil,” Bloomberg quoted Wenran Jiang, president of the Canada-China Energy & Environment Forum, as saying. “They are not going to bank on Russian alone or Middle Eastern alone. Anything from Canada will be welcome news.”
In the previous year, China accounted for about 5% of US crude oil exports, based on ship-tracking data from Kpler. Meanwhile, Russia continues to be China’s largest supplier of crude oil, with shipments reaching record highs in 2024, largely due to discounted prices on Russian crude. China’s imports from Saudi Arabia, its second-largest supplier, experienced a 9% year-on-year decline in 2024.
Rohan Mehta for TROIB News
Over the last two months, Washington and Beijing have enacted a series of reciprocal tariff increases, leading China to significantly reduce its imports of US oil. Previously, Chinese officials stated that they would refrain from imposing further tariff hikes on US goods, opting instead for alternative methods of retaliation.
According to data from the London-based oil and gas cargo tracking firm Vortexa Ltd., Chinese crude imports from a port near Vancouver on Canada's Pacific coast surged to an all-time high of 7.3 million barrels in March, with expectations that this figure may be surpassed in the current month. In contrast, China's imports of US oil have plummeted to 3 million barrels per month, down from a peak of 29 million barrels last June.
Historically, China's direct imports of Canadian crude oil have been limited, largely due to infrastructure issues, with Chinese refineries primarily obtaining crude from the Middle East and Russia. Last year, US crude accounted for approximately 1.7% of China's total crude imports, a decrease from 2.5% in 2023, according to customs data.
The majority of Canada's oil has traditionally been sent to the US for processing or re-export to Asia. However, the completion of the Trans Mountain Expansion pipeline in May 2023 has provided Canada with an alternative route to export larger volumes directly, mainly to Asian markets, thereby minimizing its dependence on the US.
“Given the trade war, it’s unlikely for China to import more US oil,” Bloomberg quoted Wenran Jiang, president of the Canada-China Energy & Environment Forum, as saying. “They are not going to bank on Russian alone or Middle Eastern alone. Anything from Canada will be welcome news.”
In the previous year, China accounted for about 5% of US crude oil exports, based on ship-tracking data from Kpler. Meanwhile, Russia continues to be China’s largest supplier of crude oil, with shipments reaching record highs in 2024, largely due to discounted prices on Russian crude. China’s imports from Saudi Arabia, its second-largest supplier, experienced a 9% year-on-year decline in 2024.
Rohan Mehta for TROIB News
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