Stocks Rally On Oil Rebound, Sober Fed -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded along with oil prices Wednesday, with markets taking in stride a U.S. interest rate hike.

The S&P/TSX Composite Index was up 141.30 points, or 0.92 percent, to 15,520.91.

Bay Street cheered this afternoon as the Federal Reserve maintained its interest rate forecast for the next few years, predicting only two more "gradual" rate hikes this year.

Energy stocks jumped 2.9 percent to lead the way. Crude oil futures rallied Wednesday as government data confirmed a surprising drop in weekly U.S. oil inventories.

Still, with U.S. storage facilities brimming, TransCanada Corp (TRP.TO) plans to build a new crude oil storage facility in Cushing, Oklahoma in partnership with M2 Infrastructure LLC.

The International Energy Administration, meanwhile, says OPEC cuts should end the global supply glut in the first half of 2017.

"For those looking for a rebalancing of the oil market the message is that they should be patient, and hold their nerve," the IEA said in its monthly report.

US crude settled at $48.86, up 2.4%, snapping a 7-session losing streak.

Calgary-based energy company STEP Energy Services Ltd., has reportedly postponed its planned initial public offering after oil prices dropped.

Concordia International (CXR.TO) shares fell after the drugmaker turned in disappointing results and declined to provide full-year 2017 forecasts.

Gold rebounded from recent losses, rising $10.10 to $1212 an ounce. Gold stocks surged up 6 percent.