China sharply reduced oil imports from the US: how energy is becoming a hostage to geopolitics
17 April 2025 11:40
The oil map of the world continues to be redrawn. In 2025, China, one of the world’s largest energy consumers, will sharply reduce its purchases of American crude oil and instead start importing record volumes of Canadian oil, "Komersant Ukrainian" reports citing Bloomberg.
In recent months, oil supplies from the United States have fallen by almost 90%, while imports from Canada have reached a historic high.
The break with the US: what happened
The decline in oil imports from the United States was a direct result of the escalating trade war between the two countries. At the end of 2024, the US administration imposed new duties on a number of Chinese goods, including high-tech products, citing the protection of strategic interests. In response, China announced a 10% tariff on US crude oil, a move that effectively made it unprofitable for most refineries in China.
As a result, imports of American oil fell to 166 thousand barrels per day, which is only 5% of China’s total crude oil imports. For comparison, back in 2022, the United States was one of the five largest oil suppliers to China.
Canadian oil comes to the fore
Instead, China is actively refocusing on Canadian suppliers. According to Bloomberg, in March 2025, China imported more than 7.3 million barrels of crude oil from Canada, an absolute record.
This was facilitated by the completion of the modernization of the Trans Mountain pipeline, which almost tripled the capacity of oil transportation from Alberta to the Pacific coast. This made it possible to transport oil to Asian buyers, including China, Japan, and South Korea, quickly and cost-effectively.
Why Canada?
There are several reasons:
- Price and quality. Canadian heavy crude is usually cheaper than US WTI or Brent, but is of acceptable quality for refining in Chinese refineries.
- Tariff neutrality. Canada is not involved in a direct trade confrontation with China, so imports are not burdened by sanctions or restrictions.
- New logistics. The commissioning of new ports and pipelines has reduced the time and cost of oil transportation from Canada to Asia.
Geopolitical context
This shift is another indication of how geopolitics directly affects global energy. The United States is trying to limit China’s economic influence, especially in strategic sectors. In response, China is pursuing a policy of supplier diversification, reducing its dependence on American resources and strengthening ties with partners who do not support sanctions pressure.
In addition to Canada, Saudi Arabia, Iran, and Russia are also in the focus of Chinese purchases. In recent months, there has been an increase in oil imports from Russia, despite Western sanctions, as Chinese companies receive favorable discounts.
Implications for the United States
The decline in oil exports to China is a sensitive blow to the US energy sector, which had been counting on the Asian market as its main buyer after the downturn in Europe. Now, the US is forced to reorient its flows toward India, the EU, and Latin America.
In addition, this loss of the market calls into question the effectiveness of the sanctions policy: while the official goal is to put pressure on China, the real result is a redistribution of energy flows and strengthening the positions of US competitors.
Global consequences
The rise in oil prices from Canada, which is already being recorded on exchanges.
Changes in global logistics, with the activation of Pacific routes.
Possible intensification of competition in the oil product markets in Southeast Asia.
Strengthening of geopolitical alliances around energy supplies, where oil becomes a lever of influence no less important than technology or microchips.
The reorientation of Chinese refiners from the United States to Canada is not just a matter of market or price. It is a strategic response to global political tensions, a signal that the world is entering a new era – the era of a multipolar energy order.
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