Join our crew and become one of the 110,527 members that receive our newsletter.

FILE PHOTO: A drone view of three berths able to load vessels with oil is seen after their construction at Westridge Marine Terminal, the terminus of the Canadian government-owned Trans Mountain pipeline expansion project in Burnaby, British Columbia, Canada, April 26, 2024. REUTERS/Chris Helgren/File Photo

FILE PHOTO: A drone view of three berths able to load vessels with oil is seen after their construction at Westridge Marine Terminal, the terminus of the Canadian government-owned Trans Mountain pipeline expansion project in Burnaby, British Columbia, Canada, April 26, 2024. REUTERS/Chris Helgren/File Photo

Crude Oil Exports Help Canada Swing to Surprise Trade Surplus in June

Reuters
Total Views: 703
August 6, 2024
Reuters

OTTAWA, Aug 6 (Reuters) – Canada recorded a surprise trade surplus of C$638 million ($461 million) in June, data showed on Tuesday, mainly led by a jump in shipments of crude oil from the recently expanded Trans Mountain Pipeline.

A surge in exports of gold also boosted exports and, together with energy products shipments, helped exports overtake imports for the first time in four months, Statistics Canada said.

Analysts polled by Reuters had forecast a C$1.84 billion trade deficit. May’s trade deficit was revised down to C$1.61 billion from a preliminary C$1.93 billion deficit.

Total exports jumped 5.5% in June, led by crude oil and gold exports, while imports were up 1.9%, driven by cars and light trucks, data showed. By volume, exports rose 3.8% in June, while imports increased by 1.3%.

After 12 years and C$34 billion in costs, Canada in May commissioned the Trans Mountain Pipeline expansion project (TMX), which unlocked the Asia-Pacific market for local crude oil producers.

“They are shipping more through the Trans Mountain pipeline into Asia-Pacific, which is really positive,” said Prince Owusu, senior economist with Export Development Canada.

Exports of energy products, which account for over a fifth of all exports from Canada, rose 11.7%. While this was aided by higher prices, Statscan said the increased volume of crude exports was the biggest contributor to the overall increase.

Exports of metal and non-metallic products, which contribute over a 10th of total exports, rose 11.8%, led largely by exports of unwrought gold.

The Bank of Canada lowered its benchmark interest rate for a second straight month in July and indicated its focus was shifting to boosting the economy.

Financial markets have fully priced in a 25-basis-point cut in the central bank’s key policy rate at its September meeting and expect similar cuts at its October and December meetings. 0#BOCWATCH

The Canadian dollar CAD=pared losses after the data, trading marginally down 0.04% at 1.3829 to the U.S. dollar, or 72.26 U.S. cents.

The rise in total imports was led by motor vehicles and parts as well as consumer goods.

An 8.2% rise to a record C$6.8 billion in imports of passenger cars and light trucks drove the motor vehicles and parts category in June.

Exports to the United States, by far Canada’s largest trading partner, rose for a third consecutive month and outpaced the growth in imports in June, leading to Canada’s trade surplus with its neighbor widening to the highest level since November 2023.

($1 = 1.3840 Canadian dollars)

(Reporting by Ismail Shakil and Promit Mukherjee in Ottawa; Additional reporting by Dael Smith; Editing by Josie Kao and Kevin Liffey)

(c) Copyright Thomson Reuters 2024.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 110,527 members delivered daily straight to your inbox.