West Texas Intermediate (WTI) crude oil prices pushed past US$100 a barrel for the first time in nine months on Wednesday, fueled by growing protests in Egypt as well as expectations of a three million barrel drawdown in U.S. oil inventories.
Clashes between supporters of Egyptian President Mohammed Morsi and his opponents killed at least 23 people today, with the President rejecting calls for his resignation. Although Egypt is not an oil producer it does control the Suez Canal, a route in which much of the Middle Eastern oil is shipped.
Energy stocks helped power the TSX higher Tuesday and Wednesday could see more of the same.
Factors that could weigh on Toronto trading, though, include a renewal of eurozone worries following the resignation of two of Portugal’s cabinet ministers in the last 48 hours over the country’s austerity policies.
As well, there are signs of slowing growth in China following the release of the government-sponsored version of China's services Purchasing Managers' Index, which fell to 53.9 for June from May's 54.3.