Energy

Chinese Oil Buyers Pay Premium for Canadian Crude Amid Iran War

Oil storage containers and pipelines at an oil terminal in Hardisty, Alberta. — Oil storage containers and pipelines at an oil terminal in Hardisty, Alberta.
Photographer: Jason Franson/Bloomberg

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By Robert Tuttle and Lucia Kassai

March 10, 2026 at 5:33 PM UTC

Chinese buyers are paying a premium for Canadian oil as the Iran War curtails supplies from their main sources in the Middle East.

Canadian barrels now have a $2 to $3 advantage in Asia because of increased rates to charter a tanker and higher risk premiums for insurance in the Middle East, said Patrick O’Rourke, managing director of ATB Cormark Capital Markets. On Monday, heavy crude shipped off the Trans Mountain pipeline for China traded at an 80 cent premium to ICE Brent for the first time since Argus Media introduced the price in September 2024.