Toronto stocks opened more than 100 points higher Tuesday as surging oil prices and a US$3.1 billion deal to buy pipeline company Terasen Inc. jump-started the market that was closed Monday for a holiday long weekend.

Shortly after Tuesday’s open, the S&P/TSX composite index was up 103.98 points, or 1% at 10,526.91.

Terasen is likely to rise toward the offer price from Kinder Morgan Inc. (KMI.N:, which said on Monday it will buy Terasen for US$3.1 billion to bulk up its share of Canadian oil shipments. Kinder Morgan will also take on US$2.5 billion in Terasen’s debt. Terasen shares closed Friday on the TSX at $31.40.

Canadian oil companies are expected to benefit from record oil prices which remained above US$61 a barrel. Prices peaked at US$62.30 after the death of Saudi Arabia’s King Fadh and supply worries in the Middle East.

Crude-oil prices fell 35¢ to US$61.22 a barrel in early trading Tuesday.

Meanwhile, in this morning’s economic news, the U.S. Department of Commerce said personal income rose at a seasonally adjusted annual rate of 0.5% in June, after rising an unrevised 0.2% in May.

Commerce said personal consumption increased by 0.8% in June after an unrevised flat reading the month before.

Economists called for U.S. personal income to increase 0.4% and consumer spending to rise 0.8%.

The department will release factory orders data for June at 10:00 ET. Economists expect the report to show a 1% increase in orders, compared with a 2.9% rise in May.

There are no major economic releases from Statistics Canada today.

Markets will also be waiting for earnings news from Quebecor World, Quebecor Inc and Saputo Inc.

Beermaker Molson Coors reported a sharply lower second-quarter profit citing merger related charges.

Toronto stocks closed lower Friday as investors moved to lock-in profits on banking shares. The Toronto Stock Exchange S&P/TSX composite index dropped 93.30 points, or 0.89%, to 10,422.93.

For the week, the key index rose 0.46%.

The junior S&P/TSX Venture composite index was today’s only gainer, rising 19.98 points, or 1.12%, to 1,803.73.

Crude-oil prices fell 35 cents to $61.22 a barrel in early trading Tuesday. The decline came a day after oil prices hit a new exchange-record high – $62.30 a barrel during the session on the New York Mercantile Exchange – following the death of Saudi Arabia’s King Fahd.

Meanwhile, the U.S. Department of Commerce said personal income rose at a seasonally adjusted annual rate of 0.5% in June, after rising an unrevised 0.2% in May.

Commerce said ersonal consumption increased by 0.8% in June after an unrevised flat reading the month before.

Economists called for U.S. personal income to increase 0.4% and consumer spending to rise 0.8%.

The department will release factory orders data for June at 10:00 ET. Economists expect the report to show a 1% increase in orders, compared with a 2.9% rise in May.

U.S. pipeline operator Kinder Morgan said it is buying Terasen, of Vancouver, for US$3.1 billion in stock and cash and the assumption of US$2.5 billion in debt. Kinder hopes the deal will help it capitalize on a vast store of oil under development in western Canada.

U.S. stocks ended mixed Monday. The Dow Jones industrial average lost 17.76, or 0.17%, to 10,623.15. The tech-heavy Nasdaq composite cndex gained 10.55, or 0.48%, to 2,195.38, and the S&P 500 added 1.17, or 0.09%, to 1,235.35.