Canada trade surplus hits 15-month high in April on soaring crude prices

SEATTLE (Oil Monster): Canada’s goods trade surplus jumped 55% in April to a 15-month high of C$2.72 billion ($1.95 billion), supported in part by higher crude prices as conflict involving Iran lifted energy values, Statistics Canada said Tuesday.

Trade surplus beats forecasts in April

Analysts polled by Reuters had forecast a surplus of C$2.57 billion. Statistics Canada also revised March’s trade surplus lower to C$1.75 billion from an initial estimate of C$1.78 billion.

Record exports driven by energy prices

Total exports rose 1.6% in April to a record C$75.16 billion. Exports of energy products increased 9.7% in April after climbing 23.4% in March, with the agency saying both gains were driven by higher prices amid uncertainty tied to the conflict in Iran.

Crude exports lead gains as gold shipments weaken

Crude exports, which rose 7.0%, contributed the most to the overall increase in exports. The broader export gain was partly offset by a 17.5% decline in metal and non-metallic mineral product shipments, largely due to weaker gold exports to Britain.

Economists expect energy strength to continue

Stuart Bergman, chief economist at Export Development Canada, described April as a “tug of war” between gold and energy but said the 1.6% export growth was encouraging given the broader global backdrop. He added that May data should show continued strength in energy exports as global supply shortages persist.

Imports hit a record on chemicals demand

Imports edged up 0.3% to a record C$72.44 billion, driven largely by a 16.9% increase in imports of basic and industrial chemical, plastic and rubber products. Analysts said the stronger trade report should support positive April GDP data after two consecutive quarters of negative growth.

U.S. remains Canada’s dominant trade partner

Although Ottawa is working to diversify exports away from the United States amid bilateral trade tensions, the U.S. remained Canada’s dominant export market in April. Exports to the United States increased 4.8% to C$51.98 billion, representing 69.2% of total trade, the largest share since September 2025.

Surplus with the U.S. widens as non-U.S. exports fall

Imports from the United States rose 1.6% to $42.50 billion, lifting Canada’s trade surplus with the U.S. to C$9.48 billion, the largest since February 2025. Meanwhile, exports to countries other than the United States fell 4.8% in April, although higher exports to China partly offset the decline and reached a record $3.84 billion.

Courtesy: www.reuters.com