Buoyed by rising crude oil output, Alberta exports reached a 21-month high in July.

According to new Statistics Canada data, the value of Alberta’s international merchandise exports reached $16.9 billion in July, 26% higher than the same month last year. Adjusted for seasonality*, the monthly value spiked to the highest level since October 2022.

On a year-to-date (YTD) basis, export revenues were up by 4.4% from the first seven months of 2023. 

Energy exports (+6.7%) are the main driver of the YTD increase. This is not surprising given that production of crude oil is at a record high this year, with prices also trending higher. Crude oil accounts for roughly two-thirds of Alberta’s total exports.

The story, however, is a bit different for non-energy commodities as they posted a 2.3% YTD decline during the same timeframe. Farm, fishing and intermediate food products drove the majority of the pull back. According to Statistics Canada, higher processing activity of canola within the country tempered volumes sold internationally while canola prices also edged lower in July. 

National exports ticked up by 1.3% YTD with Alberta responsible for over 80% of the increase.

We expect oil and gas export volumes to rise almost 5% and be a key driver of Alberta’s GDP growth this year.

*Seasonal adjustment by ATB Economics

Answer to the previous trivia question: Including the current Governor Tiff Macklem, there have been 10 Bank of Canada Governors since 1934.

Today’s trivia question: In what year was the General Agreement on Tariffs and Trade created?