TSX Slightly Lower Despite Energy Rally -- Canadian Commentary

(RTTNews) - Canadian stocks fell Tuesday, even as energy stocks rallied on hopes for deal between OPEC and Saudi Arabia to limit production.

Analysts say U.S. and Canada energy firms will increase production as oil nears $60 a barrel.

The International Energy Agency said OPEC boosted its output by 160,000 barrels a day to a record 33.64 million barrels a day in September.

"OPEC has abandoned its free-market policy set in train nearly two years ago. Global oil inventories are far too high -- in the view of some producers -- and they aren't being worked off nearly fast enough," the IEA said.

"The current price of oil has caused discomfort for all producers."

Energy stocks were up 1 percent, but gauges of most other sectors were firmly negative.

Gold stocks slipped 1.5 percent, while health care shares were down 1.5 percent.

The S&P/TSX Composite Index was down 16.66 points, or 0.11 percent, to 14,549.60.

Bombardier (BBD.B.TO) and partner Vossloh Kiepe won the contract to supply the trams to the Sweden's Gothenburg.

Canadian Solar announced the sale of 80% interest in its Pirapora I solar energy project in Brazil to EDF's renewable energy company.

Online poker company Amaya (AYA.V) and British bookie William Hill Plc said they were in talks to combine in a merger of equals.

WestJet (WJA.TO) increased traffic by 16.3%, and recorded its second highest load factor for a third quarter.