Canada's main stock index rose on Wednesday as a jump in the price of oil to a six-week high sent energy stocks rallying across the board.

More than half of the index's 10 most influential gainers were energy names, with Suncor Energy Inc (SU.TO) rising 2.2 per cent to end at $38.56. Canadian Natural Resources Ltd (CNQ.TO) added 1.7 per cent to $38.39. Encana Corp (ECA.TO) jumped 4.7 per cent to $12.53 while Crescent Point Energy Corp (CPG.TO) surged 8.6 per cent to $9.83.

The overall energy group saw its biggest one-day gain in more than two months, rising 3.0 per cent.

Oil prices jumped nearly two per cent after a U.S. report showed a bigger weekly draw than expected in crude and gasoline stocks, along with an unexpected drop in distillate inventories.

"That caused not only a pop in the oil price, but a group that has been disappointed has now turned around," said John Ing, president of Maison Placements Canada.

"Demand remains very strong even in the so-called summer driving season."

U.S. West Texas Intermediate crude for August settled up 72 cents US, or 1.6 per cent, at US$47.12 on its second to last day as the front month.

The Toronto Stock Exchange's S&P/TSX composite index rose 95.14 points, or 0.63 per cent, to finish at 15,244.71.

Of the index's 10 main groups, eight were in positive territory.

Financial services companies gained 0.5 per cent, with Manulife Financial Corp (MFC.TO) up 1.4 per cent at $25.30.

Dairy producer Saputo Inc (SAP.TO) soared 5.0 per cent to $42.42 after RBC raised the company's rating to "outperform" from "perform". Consumer staples rose 0.7 per cent.

The utilities sector ended up 0.5 per cent. Hydro One Ltd (H.TO) stock will likely be in the spotlight on Thursday after the Canadian utility firm announced after markets closed that it will acquired U.S. rival Avista Corp (AVA.N).

Canada's two largest railways ended lower, dragging the overall industrials group down 0.6 per cent. Canadian Pacific Railway (CP.TO), finished down 1.3 per cent at $203.60. The rail operator posted a better-than-expected second-quarter profit after markets closed, attributed to earnings from higher shipments of commodities.

In economic data, Canadian manufacturing sales posted the largest gain in five months in May, rising 1.1 per cent to $54.6 billion from April, topping forecasts and hitting a record level on higher sales of motor vehicles and parts, data from Statistics Canada showed.

Advancing issues outnumbered declining ones on the TSX by 169 to 70, for a 2.41-to-1 ratio on the upside.