Canadian oil shares rise on Egypt turmoil

The energy sector led the way to an almost one per cent advanceby the Toronto stock exchange Mondayas unrest in Egypt raised concern about a disruption in oil supplies and pushed crude prices higher.

The S&P/TSX energy index rose 2.7 per cent, and the benchmark composite index closed up114.4 points, or 0.85 per cent,to 13,552.0.

As protests continued against the rule of Egyptian president Hosni Mubarak,light sweet crude oil the North American benchmark rose to a two-year high,closing up$2.85 USto $92.19 US a barrel.

Nervous traders pushed oil up almost four dollars Friday amid worries that shippers might re-route some tankers away from the Suez Canal, that it might be closed or that the unrest could spread to elsewhere in the Middle East.

A million barrels a day pass through the waterway, heading north towards Europe. Almost as much moves south.

"Those watching it closely do not believe it is terribly likely to happen soon or at all, but recognize the possibility that it could occur," energy consultants Cameron Hanover said.

Brent hits $100 a barrel

Brent crude oil, the benchmark for oil prices in Europe and Asia, closed on the ICE futures exchangeup $1.59, or 1.6 per cent, at $101.01.

Canadian oil shares were also helped by Imperial Oil's report that profits rose by 50 per cent in the fourth quarter to $799 million compared with the same period a year earlier.

The Canadian dollar gave up early strength even as data showed the economy growing at a faster than expected 0.4 per cent pace in November.

The loonie was down 0.04 of a cent to 99.85 cents US as nervous investors bought into the safe haven status of the American dollar.

It closed below parity for the first time this year Friday.

Investors looking for a safe haven amid protests against the rule of Egyptian President Hosni Mubarak were attracted to the greenback and commodities.

"The market doesn't know quite what to make of it," said John Stephenson, portfolio manager at First Asset Funds.

"I think energy and financials are moving higher (because) Canada is a safe haven and commodities is a store of value. If there's some problem with oil, it may be good for Canadian producers, Canada's stock index, but it's not good for the U.S. economy broadly."

New York's Dow Jones industrial average moved up 68.23 points to 11,891.93.The Nasdaq composite index was up 13.19 points to 2,700.08.

Bullion prices backed off after rising almost $22 US on Friday as traders looked for a safe haven going into the weekend. The April bullion contract on the Nymex declined $7.20 to $1,334. 50 US an ounce.