UPDATE 4-High-flying crude gives boost to Toronto stocks

Tue May 6, 2008 5:10pm EDT
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By Leah Schnurr

TORONTO May 6 (Reuters) - Oil and gas companies led the way higher for the Toronto Stock Exchange on Tuesday, helping the main index climb nearly 1 percent as crude oil prices notched another record high.

Suncor Energy SU.TO was among the biggest gainers, up C$4.62, or 4 percent, at C$121.12 as the price of oil flew up over $122 a barrel on a weaker U.S. dollar and concerns over supply.

The Toronto market's heavily weighted energy sector jumped 3.3 percent. Canadian Natural Resources CNQ.TO was up C$4.05, or 4.6 percent, at C$92.00, and Canadian Oil Sands Trust COS_u.TO added C$3.68, or 8.3 percent, to C$48.18.

Crude settled up $1.87 at $121.84 a barrel, easing back from a record $122.73 reached earlier in the day. However, Goldman Sachs forecast oil could hit $200 a barrel within the next two years.

"How high can it go? Who knows," said Andrew Martyn, portfolio manager at Davis-Rea.

The S&P/TSX composite index .GSPTSE closed up 139.96 points, or 0.98 percent, at 14,414.30 with half its 10 main sectors higher.

The materials sector, home to resource issues, rallied 1.2 percent, while the base metals mining subindex gained 2.4 percent, pulled up by oil's momentum. Teck Cominco TCKb.TO rose C$1.48, or 3.2 percent, to C$48.18.   Continued...