Rising oil prices push Canadian trade surplus to highest level in 15 months

Ottawa —
Canadian merchandise trade surplus recorded a strong rise in April, driven by the increase in crude oil prices linked to tensions caused by the Iranian war, reaching its highest level in 15 months.

Statistics Canada announced that the trade surplus rose by 55% to 2.72 billion Canadian dollars, exceeding analysts' expectations which indicated a surplus of 2.57 billion dollars.

The March surplus was also slightly revised down to 1.75 billion Canadian dollars, compared to the initial estimate of 1.78 billion dollars.

Canadian exports rose by 1.6% in April to reach a record level of 75.16 billion Canadian dollars, mainly supported by strong energy exports.

Energy product exports jumped by 9.7% during the month, after a significant increase in March of 23.4%, as prices continued to rise amid uncertainty in global energy markets.

Crude oil was the largest contributor to this growth, with its exports increasing by 7%, which boosted the total export value and contributed to expanding the trade surplus.

However, export gains were not comprehensive, as exports of metals and non-metallic mineral products fell by 17.5%, after strong increases in February and March, mainly related to a decline in gold shipments to the United Kingdom.

On the other hand, Canadian imports rose by a limited 0.3%, also reaching a record level of 72.44 billion Canadian dollars, driven by increased imports of basic and industrial chemical products, plastics, and rubber.

Despite Ottawa's efforts to diversify its markets and reduce dependence on the United States, the data showed the continued dominance of the U.S. in Canadian trade.

Exports to the United States rose by 4.8% to 51.98 billion Canadian dollars, accounting for 69.2% of total exports, the largest share since September 2025.

Exports to non-U.S. markets declined by 4.8% in April after reaching a record level in March, but exports to China recorded a new record at 3.84 billion Canadian dollars.

These data reflect Canada's temporary benefit from rising energy prices, but at the same time reveal the continued fragility of trade diversification and the country's heavy reliance on the U.S. market, even amid escalating trade tensions between Ottawa and Washington.