The markets today

TORONTO (CP) — The price of oil dragged down Canada’s main stock index Wednesday, while indices south of the border made gains on positive news from the Federal Reserve.

The S&P/TSX composite index fell 10.99 points to 16,133.80 as the price of oil continued to fall. The July crude contract fell 36 cents to US$71.84 per barrel. Shares in the energy sector lost an average of 1.05 per cent of their worth.

“There was a big report today,” said Michael Currie, vice-president and adviser at TD Wealth. “The oil benchmarks all took a dive because the U.S. crude and gasoline inventories had an unexpected build up.”

U.S. commercial crude inventories increased by 5.8 million barrels in the week ending May 18, according to a weekly petroleum status report from the U.S. Energy Information Administration. Analysts expected about 1.9 barrels, said Currie. Meanwhile, in New York, markets rebounded. The Dow Jones industrial average gained 52.40 points to 24,886.81, the S&P 500 index advanced 8.85 points to 2,733.29 and the Nasdaq composite index rose 47.50 points to 7,425.96. The Canadian dollar averaged 77.66 cents US, down 0.55 of a U.S. cent.

In commodities, the July natural gas contract rose about two cents to roughly US$2.96 per mmBTU. The June gold contract shed US$2.40 to US$1,289.60 an ounce and the July copper contract retreated about six cents to US$3.07 a pound.