Canada just posted its fattest trade surplus in over a year, and you can thank crude oil for most of it.

The country’s merchandise trade surplus widened to C$2.7 billion in April 2026, up from C$1.8 billion in March. That’s the largest gap since January 2025 and the second consecutive monthly surplus.

Energy products are carrying the team

Total merchandise exports hit a record C$75.2 billion in April, climbing 1.6% from the previous month. The star of the show was energy products, which surged 9.7% month-over-month.

Crude oil exports alone rose 7.0% in value. But the real eye-catcher was refined petroleum products, which jumped a staggering 37.9%.

The crude oil rally has been driven largely by elevated global prices tied to geopolitical tensions stemming from the conflict in Iran.

The US relationship is booming

Canada’s goods trade surplus with the United States widened to C$9.5 billion in April. That’s the largest bilateral surplus since February 2025.

The expansion was driven by increased shipments of crude oil and passenger vehicles.

On the import side, Canada brought in C$72.4 billion worth of merchandise, a modest 0.3% increase from March. Gains in chemicals and electronics imports were partially offset by lower gold imports.

When services trade is factored in, the total trade surplus ticked up to C$2.8 billion.

Context and historical perspective

Canada’s trade balance has been on a bit of a rollercoaster over the past year. After running deficits for several months, the return to surplus territory in March was cautiously welcomed. April’s widening confirms that the March print wasn’t a one-off blip.

A C$9.5 billion monthly surplus with the US is the kind of number that gets attention in Washington. Tariff disputes, supply chain realignments, and shifting energy policies have all introduced volatility into what was once considered one of the most predictable bilateral trade corridors in the world.

What this means for investors

Canadian energy producers and export-oriented companies are the obvious beneficiaries. Record export volumes combined with elevated crude prices create a favorable revenue environment for the sector. Companies with significant US exposure in energy and auto manufacturing are positioned to capture the most upside from these trade dynamics.

The Canadian dollar could also see support from persistent trade surpluses. A wider surplus means more foreign currency flowing into Canada to pay for its exports, which creates natural demand for the loonie.

The energy concentration is a double-edged sword. The 37.9% jump in refined petroleum product exports is impressive, but that kind of volatility cuts both ways. Investors with exposure to Canadian equities or the Canadian dollar should watch crude oil futures and geopolitical developments in the Middle East as closely as they watch Statistics Canada releases.