Oil prices and the TSX moved higher Monday after OPEC scrapped its planned meeting in April and said it will decide whether to extend output cuts in June.
The 1.2 million barrels per day cut made by the oil cartel in December has helped to dampen oversupply and U.S. sanctions against Venezuela and Iran will have an additional impact over the coming months.
West Texas Intermediate, the benchmark North American contract, was up 45 cents at midday to $58.95 US a barrel, while Brent, the European contract, had soared to $67.45. Western Canada Select, the Canadian contract, stood at $49.30 US, reflecting the strength it has demonstrated since Alberta curtailed output.
The TSX continued the climb it has maintained since the beginning of the year, up 41 points to 16,181. It was mainly buoyed by energy stocks.
Energy stocks also rose in the U.S., but the Dow was down 37 points to 25,858 after Boeing continued its fall and tech stocks slipped.
U.S. investors are hoping their central bank gives some guidance over its rate hike plans later this week.
The outlook for oil is complicated by fears of a global slowdown, precipitated by the trade war between the U.S. and China.
President Donald Trump has been critical of the Organization of Petroleum Exporting Countries, claiming it is forcing oil prices too high.
But Saudi Arabia’s energy minister Khalid al-Falih said the market was looking oversupplied until the end of the year. He suggested the Saudis might be willing to extend the cuts in production another six months after a meeting in June. However, he said April would be too early for any decision on output policy.
While OPEC is holding to its production cutbacks, the U.S. is increasing its shale production and exporting more oil.