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Canadian Oil Heads West, Not South; Canada Cuts US Discount for China: Betrayal or Tariff Revenge?

17th May 2025

Canada is opening new markets for its oil and becoming less dependent on US Markets.

China has emerged as the top customer for Canadian oil shipped on the expanded Trans Mountain pipeline, ship tracking data showed, as a U.S. trade war has shifted crude flows in the year since the pipeline started operating.

China's new interest in Canadian oil comes as U.S. President Donald Trump's trade war has strained relations between longtime allies Washington and Ottawa. It also reflects the impact of U.S. sanctions on crude from countries like Russia and Venezuela.