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BUSINESS REPORT: Oil prices rise to ten-month highs as TSX continues at a record pace

Upgrading plant at the Suncor Energy Oil Sands project near Fort McMurray, Alberta on Tuesday, June 13, 2017.
Upgrading plant at the Suncor Energy Oil Sands project near Fort McMurray, Alberta on Tuesday, June 13, 2017. Larry MacDougal/Canadian Press

Oil prices moved above $55 per barrel Wednesday morning, a ten-month high, on promises of continued cutbacks by OPEC and other major producers.

As oil rallies, the energy and banking sectors have taken the TSX to new record highs.

The exchange’s climb doesn’t quite rival the torrid pace of U.S. equity markets, which opened at record highs Wednesday morning, but is still up just under five per cent on the year.

READ MORE: BUSINESS REPORT: Dollar dips as economic growth slows

However, the Canadian dollar, once joined at the hip to the price of oil, has diverted and continues its steady march lower, losing more than five cents since September.

And a word of caution for investors.

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The outlook going forward is not at all rosy according to Bank of Canada Governor Stephen Poloz, who said Canada is at a crucial point in the economic cycle, with significant uncertainties clouding the way forward.