Toronto stocks finished higher on Wednesday as rising oil prices fanned a rally in energy shares.

The S&P/TSX composite index jumped 236.44 points, or 2.82%, to 8,634.00, with six of its 10 main sectors ending higher.

Oil prices increased 3% as Saudi Arabia told major customers it was reducing supplies substantially next month. That helped the TSX energy sector rally 5.9%.

EnCana Corp rose 6.4% to $59.64, while Suncor Energy ended with a gain of 11.4% to $26.70.

Financial stocks fell 1.69% on uncertainty over the fate of a rescue plan for U.S. automakers and its impact on Canada’s economy.

Bank of Nova Scotia dropped 3.4% to $31.24, while Sun Life Financial fell 6% to $24.07.

The junior S&P/TSX Venture composite index gained 19.52 points, 2.85%, to 704.54.

The Canadian dollars gained 0.31¢ to close at US79.08¢.

In New York, U.S. stocks rose in a volatile session on as strenght in energy, mining and materials shares, offset nervousness over whether U.S. lawmaker will agree on a US$15 bailout for ailing car makers.

Signs that the package may still face political hurdles fueled uncertainty, sending GM down 2.1%, while Ford edged up 0.6%.

The Dow Jones industrial average rose 70.09 points, or 0.81%, to 8,761.42. The S&P 500 gained 10.57 points, or 1.19%, to 899.24. The tech-heavy Nasdaq composite index was up 18.14 points, or 1.17%, at 1,565.48.

IE