Canada’s trade surplus swung to its widest point since 2008 in June as exports of products like oil surged while imports shrank.
Statistics Canada reported Thursday that exports surged by 8.7 per cent to $53.8 billion. Energy led the way with exports rising by 22 per cent to $11.3 billion. That’s the largest amount since March of 2019.
Cars and car parts were also up, by 14.9 per cent, as were metal and non-metallic minerals, which rose by 12.7 per cent.
All in all, Canada exported $4.3 billion more goods and services to the world in June than it did the previous month. That’s the biggest monthly increase on record, if 2020’s volatile numbers are stripped out.
While Canada was shipping more goods and services to the rest of the world, it was also buying less.
Imports fell one per cent to $50.5 billion as consumer goods fell by 3.7 per cent.
“This category was weighed down by a decline in clothing, footwear and accessories, which Statcan noted was in part due to restrictions in some parts of the country and port disruptions in Asia related to COVID-19 outbreaks,” TD Bank economist Rishi Sondhi said.
Imports of cars and car parts, meanwhile, fell by 3.8 per cent.
One type of good that Canada imported a lot more of, however, was vaccines. Imports of vaccines rose by 74.5 per cent in the month to $745 million. That’s 21 times higher than the amount of vaccines that Canada was importing the same month a year ago, before the country’s COVID-19 vaccination effort ramped up.
U.S. exports surge even more
Almost all of Canada’s trade surplus came from dealings with the U.S.
Canada posted a surplus of $8.3 billion with the U.S. for the month. With the rest of the world, however, Canada continues to have a trade deficit, although that deficit shrank to $5.1 billion, resulting in a total trade surplus of $3.2 billion.
“Canada’s merchandise trade balance has posted surpluses in four of the first six months of the year, boosted by strong demand arising from U.S. re-openings and the rise in commodity prices,” Bank of Montreal economist Shelley Kaushik said.
“Looking ahead, expect imports to recover as the economy reopens, while still-strong energy prices and U.S. growth should continue to support exports.”
Oil Prices Jump As Crude, Fuel Inventories Continue To Fall – OilPrice.com
The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 6.108 million barrels for the week ending September 17.
It exceeded the analyst expectations who had estimated a loss of 2.400 million barrels for the week.
In the previous week, the API reported a draw in oil inventories of 5.437 million barrels—a larger loss than the 3.903 million barrel draw that analysts had predicted.
Oil prices rose on Tuesday leading up to the data release, with U.S. crude oil inventories falling weekly, OPEC+ production that is not as strong as the market had anticipated, and depressed oil production in the United States as a result of the aftermath of Hurricane Ida.
WTI rose 0.31% on Tuesday afternoon leading up to the data release.
Oil inventories in the United States have drawn down considerably so far in 2021, shedding more than 76 million barrels according to API data, and below pre-pandemic levels. Meanwhile, the EIA’s latest data suggests that crude oil inventories in the United States are now 7% under the five-year average for this time of year, at 417.4 million barrels.
Most recently, U.S. oil production has been down more than a million bpd over the last couple of weeks, sitting at just 10.1 million bpd for week ending September 10 as Hurricane Ida continued to shut in oil producers in the Gulf of Mexico. 16.64% of GoM oil production is still shut in today, according to the BSEE.
The API reported a draw in gasoline inventories of 432,000 barrels for the week ending September 17—compared to the previous week’s 2.761-barrel draw.
Distillate stocks saw a decrease in inventories this week of 2.720 million barrels for the week, compared to last week’s 2.888-million-barrel decrease.
Cushing inventories fell this week by 1.748 million barrels after last week’s 1.345-million-barrel decrease.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.
B.C. preparing to offer COVID-19 vaccine to 6- to 11-year-olds once approved – Globalnews.ca
British Columbia is “actively preparing” to provide the Pfizer COVID-19 vaccine to children aged six to 11, if and when it receives Health Canada approval.
Provincial health officer Dr. Bonnie Henry said Tuesday there is optimism around approvals as phase two and phase three studies are finishing up.
The information from the studies will be part of data package being submitted over the next few weeks on how well the vaccines work and how safe they are, Henry said.
Study finds Pfizer vaccine safe and effective for children 5 to 11 years-old
“I think that’s very good news,” she told a news conference.
“That gives us just one more tool to be able to protect younger children against this virus.”
But she was reluctant to put a timeline on when children may be eligible for the shot. In previous statements, Henry has pointed anywhere from the fall to the end of 2021.
On Monday, Pfizer said its research shows its product works for children aged five to 11 and that it will seek U.S. authorization for this age group soon.
But Henry said Tuesday they are looking at children between six and 11 being eligible.
Pfizer says their vaccine works for children 5-11
Health Canada has said several studies on children are underway by various vaccine makers, and that it expects them to provide data in the next few months.
Pfizer studied a lower dose of its two-dose vaccine in more than 2,200 kindergartners and elementary school-aged kids, mostly in the United States and Europe.
Preparing the vaccine at a lower dose could have some logistical challenges, however.
“We do know that there may be some delays before the manufacturing process,” Henry said.
“This means the vaccine will be available to children in B.C., but we are preparing so that we’re ready to offer it and we have all of the information that parents will need to make those decisions about whether their children should be immunized, and I think this will be very important, especially as we are into the school year again.”
– with files from the Canadian Press
© 2021 Global News, a division of Corus Entertainment Inc.
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