China becomes largest buyer of Canadian oil
May 16, 2025
The energy markets are mixed here this morning and there is no fresh market moving news. Marekts have run into technical resistance and there is no news to push them through those levels at this point. OPEC+ is increasing their oil production and there is the chance a deal between Iran and the US on their nuclear program puts an additional 800,000 bpd into the market and these items have the slowed the upside momentum.
The IEA said economic headwinds combined with record sales of electric vehicles will reduce global oil demand growth to 650,000 bpd for the remainder of 2025. That marks a slowdown from 990,000 bpd, the IEA measure for demand growth over January-March.
Reuters calculation showed that Russia’s oil and gas revenue is seen falling by a third in May from a year earlier to 0.52 trillion roubles or $6.48 billion, the lowest level since July 2023 amid weaker oil prices and a stronger rouble.
China has become the largest buyer of Canadian oil shipped through the expanded Trans Mountain pipeline, following a shift in global crude oil flows driven by US trade tensions and sanctions.