Toronto stocks and the Canadian dollar resumed their rally today as oil moved higher in anticipation of an output freeze by major producers.
Brent oil, the main international contract, was above $40 US a barrel after falling sharply Tuesday.
West Texas Intermediate, the benchmark North American contract, had risen two per cent by mid-morning, to $37.25, after a four per cent drop yesterday.
The TSX broke an eight-day winning streak with a down day Tuesday but on Wednesday, it was ahead 81 points in the morning, to 13,392.
The Canadian dollar rose one third of a cent to 74.90 cents US.
The Bank of Canada's decision to keep its key interest rate unchanged was broadly expected and investors were looking to other factors.
Oil and markets have been rising for more than three weeks on hopes of a return to stability in oil prices until Tuesday's rout.
Meeting details in doubt
The signals are mixed from oil producers around the world on whether there will be a concerted effort to put a floor on oil prices.
An Iraqi oil official told a state newspaper today that there is a plan for members of the Organization of the Petroleum Exporting Countries (OPEC) to meet March 20 in Moscow with non-OPEC producers.
However, Russian Energy Minister Alexander Novak has said through a spokeswoman there is no set place or time for such a meeting.
The hope is that large producers such as Saudi Arabia and Russia are tired of selling their oil at cheap prices, with the corresponding drop in government revenues.
Saudi Arabia, which has had balanced budgets for years, had a deficit equal to 15 per cent of its GDP in 2015 and is looking at another deficit in 2016. It is expected to tap bond markets for $31 billion US in new debt this year.
Smaller OPEC members such as Venezuela are keen for an agreement as low oil prices have played havoc with its economy.
But Iran, which has been subject to an embargo for years, is keen to expand its exports. Its delivery of one million barrels of crude to European shores on Sunday helped depress oil prices on Monday.
Iran's goal is to double its output to two million barrels a day.
Markets in Europe were rising and New York's Dow industrial average was up 24 points at 16,988, while the broader S&P rose five points to 1984.
There is optimism in Europe over the European Central Bank decision on interest rates due Thursday. The European Central Bank (ECB) is expected to extend or even expand its stimulus program.
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