A jump in crude oil prices and a potentially major natural gas find by Shell Canada Ltd. helped push the S&PTSX into the black, while the rising U.S. dollar sent Wall Street into positive territory Wednesday morning.

At midday, the S&P/TSX was up 5.38 points or 0.06% to 8996.33. The TSX Venture exchange was hit by falling old prices, losing 36.22 points or 2.12% to 1675.97. In New York, the Dow Jones industrial average rose 45.52 or 0.44% to 10486.10. The Dow had fallen more than 150 points over the last two sessions.

Broader stock indicators were narrowly higher. The Standard & Poor’s 500 index was up 3.90 or 0.33% at 1180.97, and the Nasdaq composite index gained 8.60 or 0.41% to 2123.26.

The Canadian dollar fell more than a cent, 1.28¢, to US81.51¢ as the U.S. greenback made global gains and currency markets responded to the Bank of Canada’s decision to leave interest rates unchanged.

Crude oil prices rose Wednesday ahead of U.S. petroleum inventory data and an OPEC meeting this week at which the group could decide on a production cut. Light sweet crude for January delivery was up 19¢ to US$41.65 a barrel on the New York Mercantile Exchange in electronic trading in Europe. In London, Brent for January delivery on the International Petroleum Exchange was up 28¢ at US$38.55.

The TSX energy sub-group was rebounded in the morning, gaining 0.46% at midday. The group got a boost from Shell Canada, which announced what it called a major natural gas discovery in central Alberta on Wednesday. The Calgary-based oil and gas producer said it had found the gas in a previously untested area about 30 kilometres southwest of Rocky Mountain House, Alta.
An exploration well 75% owned by Shell and 25% by Mancal Energy Inc. found a deposit Shell estimates could contain between 500 billion to 800 billion cubic feet of raw gas.

Shell stock jumped 1.79% to $74.90.

Technology issues were also up, 2.20%, lead by Nortel Networks Corp., which gained nearly 4% to $4.70 after the company, which has been trying to untangle faulty financial results for months, said it would start filing the results on Jan. 10.

Gold issues were off 2.30% as the rising US$ also took a big bite out of the price of gold, which fell $14.90 to US$436.60 US an ounce in New York.

In other earnings news, shares in Laurentian Bank were down 1.75% to $24.76 after its profit plunged to $47.8 million in 2004. Laurentian also confirmed it hopes to persuade one of the Big Five Canadian banks to merge their Quebec branches in exchange for a stake in the Montreal-based financial institution.

On Wall Street, investors were encouraged as the U.S. dollar gained against the Japanese yen after Japan’s government reported slower-than-expected economic growth in its most recent quarter. Wall Street had been concerned that the weak dollar could lead to a drop in foreign investment.

Crude oil futures rose after the U.S. Energy Department said fuel inventories were higher than Wall Street expected, but that supplies of distillates such as heating oil rose more slowly

Investors were also digesting a disappointing earnings forecast from Dow component Merck & Co. The drug maker warned that its 2005 profits would be lower than analysts expected due to the withdrawal of its Vioxx arthritis drug from the market earlier this year. Merck nonetheless rose 2.12% to $28.48 as it reaffirmed its 2004 earnings targets.

Texas Instruments Inc. lost 2.48% to $24.40 after it narrowed its 2005 earnings and revenue forecasts, which still fall within Wall Street’s estimates, but said 2004 earnings remained on target.

Overseas, Tokyo’s Nikkei Stock Average of 225 issues rose 67.37 points or 0.62% to close at 10941.37.

In Hong Kong, the Hang Seng Index lost 213.46 points or 1.5% to finish at 14022.32.

London’s FTSE 100 index was down 28.1 points to 4,700.6.

Frankfurt’s DAX 30 lost 9.97 points to 4202.65 while the Paris CAC 40 moved 11.91 points lower at 3775.54.