Burst in crude prices sends TSX up; N.Y. flat on inflation, consumer concerns at 14:44 on February 17, 2006, EST.

TORONTO (CP) - The Toronto stock market advanced Friday afternoon, led by gains in the energy sector as fears of lower oil production in Nigeria sent the price of crude sharply higher.

"It's a reminder that the political uncertainties and the exciting areas of the world to which you have to go to find this stuff, leave oil vulnerable to supply disruptions," said Gavin Graham, chief investment officer, Guardian Group of Funds.

New York indexes were little changed after three days of advances as investors got another whiff of inflation - which raised concerns about higher interest rates - while Dell delivered a disappointing outlook.

Toronto's S&P/TSX composite index was up 69.82 points to 11,774.13 as the market also got support from precious and base metals.

"Even after the last couple of weeks's selloff, you are still substantially above where you were in mid-November," observed Graham.

"There will be volatility but for people to go, 'Oh, that's the end of the oil bull market' or whatever, you get occasional reminders that there are things out there that might mean this has some legs."

The TSX Venture Exchange moved up 44.58 points to 2,506.27.

The Canadian dollar was up 0.48 cent to 86.86 cents US.

New York's Dow Jones industrials slipped 0.8 of a point to 11,119.88 as markets wind down prior to the President's Day holiday Monday.

The Nasdaq was off 5.57 at 2,289.06 and the S&P 500 was 1.12 points lower to 1,288.26 as the U.S. Labour Department reported that wholesale prices rose 0.3 per cent in January. Core prices, excluding volatile energy and food costs, jumped 0.4 per cent, the sharpest one-month rise in a year.

More dampening economic news came from the University of Michigan, which said its consumer-sentiment index for February tumbled 3.8 points to 87.4, well below the consensus estimate of 91.

The TSX energy sector was ahead 1.6 per cent as the March contract for crude on the New York Mercantile Exchange jumped $1.42 to $59.88 US a barrel.

The advance came after a report that a Nigerian rebel group has declared "total war" on foreign oil interests in the southern Niger Delta. The Movement for the Emancipation of the Niger Delta recently attacked two pipelines, provoking worries about supplies.

Oil prices had been moving lower for most of this week on forecasts of slackening U.S. demand.

On the Toronto stock market, Petro Canada improved $1.43 to $54.25 while Nexen Inc. was $2.21 higher to $60.25 after a 22 per cent rise in fourth-quarter earnings to $300 million against a 12 per cent decline in production. The Calgary company said 2005 was its most profitable year ever thanks to high oil prices.

Base and precious metals stocks also boosted the TSX.

The metals and mines sector was up 1.9 per cent on rising nickel prices. Inco Ltd. advanced $1.19 to $57.24.

The gold sector also gained one per cent with the April contract for bullion on the Nymex climbed $5.80 to $554.60 US an ounce and Bema Gold Corp. improved nine cents to $4.69.

Telus Corp. shares were 41 cents lower to $44.59 as its fourth-quarter profit tumbled 42 per cent to $78.5 million after costs related to its lengthy labour disruption. Three-month revenue increased 6.2 per cent to $2.1 billion on strength in the mobile-phone division.

Nortel Networks Corp. disclosed plans to propose a share consolidation, and its stock moved seven cents lower to $3.34.

West Fraser Timber Co. Ltd. shares added 61 cents to $41.24 as it reported a fourth-quarter profit of $8.7 million, down from $41 million a year ago which included a big gain on U.S.-dollar debt.

Opti Canada Inc. booked a net loss of $2 million for 2005, reversing the previous year's $1-million profit. Shares in Opti, which is building Canada's fourth oilsands project but has no operating cash flow, moved up 66 cents to $42.25.

Patheon Inc. tumbled 10.7 per cent to $7.01 after the drugmaker lowered its outlook for the first quarter of 2006 due to production problems, delays and lower revenues from drug development services.

Imax shares jumped 90 cents to $9.99 as it announced it expects to "meet or exceed" 2005 earnings-per-share guidance of 35 to 38 cents.

Shares in Research In Motion were $2.35 higher to $83.82 after its chief financial officer said RIM still sees growth opportunities for its BlackBerry business despite dispute with U-S patent firm NTP.

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