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Canada can still play oil, gas card: Foreign minister

  • Märkte: Crude oil, Natural gas
  • 06.03.25

Oil, gas and other natural resources remain options for Canada to use as leverage should US imposed tariffs escalate further, Canada's foreign affairs minister said Wednesday.

Curtailing flows or increasing prices for natural resources that Canada sells to the US are "... cards that we could potentially play if this would escalate, and the US knows that," Canadian foreign affairs minister Mélanie Joly said Wednesday at the Toronto Region Board of Trade.

Canada produces about 5mn b/d of crude, of which 80pc is exported to the US, including to the midcontinent where some refiners have little practical alternative supply.

Canada also supplies significant quantities of electricity to New York, the New England states, Michigan, Minnesota and other states. The provincial leaders in Quebec and Ontario have discussed using those flows to the US as leverage in the trade conflict.

The US also relies on Canada for about 90pc of its annual potash fertilizer needs, which, along with uranium can be used in negotiations, said Joly.

"In order for us to be using any other new cards, we need to make sure that Canadians are on board and that premiers are on board," said Joly.

Provincial leaders appear to be becoming more united "bit-by-bit", Joly said, but Alberta premier Danielle Smith said earlier in the day her oil-rich province remains against a tax on Canadian energy exports or curtailing flows to the US. Not only does Alberta rely heavily on energy for revenue but Smith is concerned that Ottawa could collect any tax imposed on the US and distribute it to other parts of Canada — rather than return it to Alberta.

Smith "would love" to send more crude to the US, but the tariff action is delaying pipeline proposals, forcing her to look in every other direction within Canada.

Alberta is Canada's largest crude producer with 4.19mn b/d of oil output in January, according to the provincial energy regulator.


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