Saturday, May 17, 2008

At noon: Two views on oil

Canada's gain is U.S. pain.

The surging price of crude oil, which hit a new record of $127.82 (U.S.) a barrel earlier in the day, sent the S&P/TSX composite index deeper into its own record territory on Friday at midday. The benchmark index, which has a heavy exposure to energy producers, rose 110 points, or 0.7 per cent, to 14,938 – putting it within spitting distance of 15,000.

Energy stocks, of course, led the way higher. Suncor Energy Inc. rose 3.3 per cent, making it the biggest mover on the index. Canadian Natural Resources Ltd. rose 2.4 per cent and EnCana Corp. rose 1.8 per cent. Meanwhile, aerospace company Bombardier Inc. rose 4.8 per cent to $7.50 (Canadian) a share – its highest level in six years.

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