FINANCIAL MARKETS

TORONTO — Canada’s main stock index rose to its highest level since February as the energy sector was powered by oil prices surging to a 10-month high.

The key commodity sector climbed 7.3 per cent as crude briefly topped US$50 a barrel for the first time in almost a year.

The price bounced higher as OPEC signalled it would hold production constant through its February meeting and Saudi Arabia may institute an output cut.

There had been concerns that the oil cartel would start to normalize production even as countries again go into COVID-19 lockdowns, said Greg Taylor, chief investment officer of Purpose Investments.

“But it feels now that OPEC’s playing ball and trying to get the price higher and that's really showing up in the price of the oil companies today,” he said in an interview.

West Texas Intermediate gained nearly five per cent.