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Canada: Exports Broke Records in February Thanks to Oil

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Canadian exports jumped in February to reach a record level, thanks in particular to oil, the prices of which have been driven up since the start of the war in Ukraine.

After recording a sharp drop in January, imports rose (+3.9%) to stand at 56.1 billion Canadian dollars (41.2 billion euros). But the increase in exports (+2.8% to 58.7 billion Canadian dollars) allowed the trade balance to remain in the green. Exports of energy products experienced a record increase (+7.8%), with that of crude oil posting a jump of 9.9%. Canada is the fourth largest oil producer in the world.

Dependence on Russia for its exports

After the Russian invasion of Ukraine at the end of February, which led to the imposition by Ottawa of economic sanctions against Moscow, Statistics Canada recalls that total trade with Russia amounted to 2.8 billion dollars in 2021, or 0, 2% of Canadian business activity. The direct impact of the various trade sanctions imposed by several countries on Russia should be minimal on the values ​​of Canada’s merchandise trade ,” predicts the institute. But this should have an effect on exports, Russia being a producer of goods also present in large quantities in Canada, such as crude oil, natural gas, cereals, lumber, metals or fertilizers.

“Export values ​​could be indirectly affected by an increase in demand and a substantial increase in prices, given the consequences of the conflict on the future supply of these goods”.

The trade surplus with the United States, Canada’s largest trading partner, also reached its highest level since December 2005, settling at $10.3 billion in February. The blocking of certain border axes in February, such as the Ambassador Bridge which connects Windsor in Ontario to the American city of Detroit, by demonstrators opposed to sanitary measures ” seems to have had little impact ” on Canadian imports and exports. Commercial activity around certain border crossings has certainly decreased by 8.8% compared to February 2021, but an increase in commercial activity has been observed at certain other points located nearby.
Finally, imports from China increased by 26.9%.

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