Statistics Canada released the trade data on Thursday. Canada's trade deficit narrowed to C$0.98 billion in February from a deficit of C$1.5 billion in January. January's figure was revised up from a deficit of C$2.5 billion. Analysts had expected a trade deficit of C$1.8 billion.

The lower deficit was driven by stabilising oil prices.

Exports were up 0.4% in February. Exports of energy products soared by 14.9%.

Imports declined 0.7% in February. Imports of motor vehicles and parts slid by 4.7%, while imports of industrial machinery, equipment and parts declined 4.3%.