Commodities
Lower Crude Prices Cut US-Canada Energy Trade Value By 11% in 2025, EIA Says
The value of energy trade between the United States and Canada fell 11% in 2025 to an estimated $137 billion, weighed down by lower crude oil prices and reduced oil trade volumes, the US Energy Information Administration strategists said in a note on Wednesday.Crude oil accounted for the largest share of bilateral energy trade, representing 69% of the total value exchanged between the two countries last year.Sean Hill, senior economist at the EIA, said that the decline reflected weaker global oil prices, with Brent crude averaging $69 per barrel in 2025, down $11/bbl from the previous year.The US remained heavily dependent on Canadian energy supplies, with imports from Canada accounting for most of the bilateral energy trade.US energy imports from Canada totaled $111 billion in 2025, while US energy exports to its northern neighbor amounted to $26 billion.Crude oil trade between the two countries was valued at $94.7 billion in 2025, down 16% from 2024, as lower prices combined with a decline in traded volumes.Canada remained the largest supplier of crude oil to the US, with US imports averaging 3.9 million barrels per day in 2025, down 4% from the previous year.The decline was partly linked to increased use of Canada's Trans Mountain Expansion pipeline, which has expanded Canadian producers' ability to ship crude to the Pacific Coast for exports to markets in Asia and the US West Coast.However, despite new US tariff measures introduced in 2025, Hill said Canada continued to send most of its crude exports to the US, supported by extensive pipeline links between the two countries and strong demand from US refineries.US refineries, particularly those on the Gulf Coast and in other regions with complex processing capabilities, have traditionally favored heavier crude grades produced in Canada because they are suited to facilities designed to process lower-quality feedstocks.The US exported relatively small volumes of crude oil to Canada in comparison, averaging 383,000 b/d in 2025, down 2% from 2024. The EIA said that the exports typically consisted of lighter, low-sulfur crude grades shipped by pipeline to eastern Canadian markets.Canada's energy exports to the US were subject to a 10% tariff from March 6, 2025, though some crude oil shipments could qualify for exemptions under the United States-Mexico-Canada Agreement. More recent tariff measures announced by the White House exempted energy trade, according to the EIA.The existing infrastructure linking the two markets has helped sustain Canadian crude flows despite trade policy uncertainty.Meanwhile, trade in refined petroleum products between the United States and Canada increased by volume in 2025 but declined in value as lower fuel prices reduced revenues.Petroleum product trade volumes rose by about 2% during the year, while total trade value fell by around 4%.The US imported 583,000 b/d of petroleum products from Canada in 2025, down 2% from the previous year. The value of those imports dropped 15% to $16 billion, reflecting weaker fuel prices and lower volumes.Going forward, the EIA said crude oil prices remain a major factor influencing gasoline and diesel prices, meaning fluctuations in global oil markets continue to shape the value of North America's integrated energy trade.