The Globe and Mail reports in its Friday edition that the U.S.-China tariff war initiated by President Donald Trump has prompted significant shifts in commodity markets, forcing producers and traders to reconsider long-standing relationships. A Reuters dispatch to The Globe reports that there is a notable drive to reduce reliance on the U.S. market. For instance, in April, Canada exported more seaborne crude oil to China than to the U.S. for the first time, highlighting how market dynamics are responding to the uncertainty of the trade conflict.
Canada's seaborne exports of crude to China were 299,000 barrels per day (bpd) in April, up from 277,000 bpd in March.
Seaborne shipments to the United States were 286,000 bpd in April, about in line with March's 283,000 bpd but down from the record of 431,000 bpd in September last year. The numbers above only represent oil transported by vessels, excluding the larger volumes of Canadian crude flowing into the U.S. through pipeline and rail. Canada sends about four million bpd of crude to its southern neighbour via pipelines, and while the volumes have been steady, prices have shifted in Canada's favour, reflecting another unintended consequence of Mr. Trump's chaotic policies.
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