The Blubber

A pipeline expansion in Western Canada that began operations less than a year ago has opened up greater access to Alberta’s oilsands for China and other East Asian oil importers.

Chinese imports of crude from the pipeline’s endpoint near Vancouver surged to a record 7.3 million barrels in March and are on track to surpass that level this month, according to data from Vortexa Ltd., which monitors global waterborne oil and gas shipments. In contrast, Chinese imports of U.S. crude have plummeted to 3 million barrels per month, down from a peak of 29 million in June.

This shift in North American crude flows to China—the world’s largest crude importer—illustrates the broader economic and strategic realignments triggered by President Donald Trump’s efforts to overhaul global trade policies.

China’s increased interest in Canadian oil began when the Trans Mountain pipeline expansion (TMX) started moving Alberta crude to British Columbia’s Pacific coast in May. That trend has picked up pace since Trump entered office with a pledge to impose tariffs on China and other trading partners.

“In light of the trade war, it’s unlikely China will ramp up U.S. oil imports,” said Wenran Jiang, president of the Canada-China Energy & Environment Forum. “They’re not going to rely solely on Russia or the Middle East. Any supply from Canada is seen as a positive development.”

While Chinese imports of North American oil remain small compared to volumes from the Middle East and Russia, Alberta’s oil sands offer a rare source of low-cost, dense, high-sulfur crude—precisely the type suited to China’s advanced refining facilities.

For Asian refineries, similar grades from the Middle East—such as Iraq’s Basrah Heavy—are relatively expensive, especially with regional benchmark Dubai crude trading at strong levels.