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Oil gains on talk of OPEC production restraint

Crude oil futures surged by almost three per cent Monday following a report that said some OPEC members had called for restraint on output.

TSX benchmark index closes at highest level since June 2015

Crude oil futures surged Monday following a report that some OPEC members had called for a production freeze.

Crude oil futures surged almost three per cent Monday following a report in the Wall Street Journal that said some OPEC members had called for restraint on output.

Oil futures gained $1.22 US to settle at $43.02 US a barrel in New York trading. 

The bullish mood was further boosted by a statement from Qatar's energy minister, who said oil prices are expected to rise in the latter part of 2016, Bloomberg said.

Jenna Delaney, a senior energy analyst at Bentek Energy in Denver, said the rise in oil futures was "based on sentiment rather than fundamentals," noting that OPEC has been supplying well above its production ceiling for the entire year.  

"Seeing any positive news in the market with [oil] prices having come off so rapidly over the past couple of weeks is going to spark some enthusiasm and some upward support," she told CBC News. 

TSX at 13-month high

The energy group led the Toronto Stock Exchange solidly higher.

In Toronto, the S&P/TSX composite index was up 107 points to close at 14,756. That's its highest close since June 26, 2015.

The Dow Jones industrial average closed down 14 points at 18,529.

U.S. markets set new highs last week following a strong U.S. jobs report on Friday.   

With files from Reuters and the CBC's Meegan Read

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