TORONTO (Bloomberg) — Canada’s Standard & Poor’s/TSX Composite Index rose to its second-highest close ever, led by energy companies such as EnCana Corp., as colder weather and planned output cuts by the OrganiSation of Petroleum Exporting Countries caused natural-gas and oil prices to surge.“If natural-gas prices are rising, it makes the gas-weighted stocks look cheap,” said Brendan Kyne, chief investment officer at Leeward Hedge Funds Inc., which manages C$200 million in Toronto “Oil and gas stocks lagged the market dramatically in 2006. I see a positive year for the S&P/TSX in 2007 — energy stocks may lead.”

The S&P/TSX added 68.64, or 0.5 percent, to 13,014.60 in Toronto. It closed at a record 13,021.77 on December 14.

Natural gas for March delivery rose 12 percent to $7.74 per million British thermal units, the biggest gain in more than three months in New York, as colder weather stoked demand for the furnace fuel across North America.

The US National Weather Service predicted that below-normal temperatures will persist in the eastern US for the next two weeks. US gas stockpiles may have fallen by 200 billion cubic feet last week, according to the median estimate from 12 analysts in a Bloomberg survey before an inventory report due tomorrow. That would be the biggest drop of the heating season.

EnCana, Canada’s biggest natural-gas company, advanced C$1.83 to C$56.91. Smaller rival Canadian Natural Resources Ltd. climbed C$2.22 at C$59.02. Shares of EnCana and Canadian Natural have gained 1.7 percent and declined 16 percent, respectively, over the last year as natural-gas prices fell about one third. The S&P/TSX has returned 8.9 percent over the same time span.

“It looks like natural-gas surpluses are about to disappear because of the cold weather,” Kyne said. “It’s a huge day for the energy complex.”

Petro-Canada, the nation’s third-biggest oil and gas producer, rose C$1 to C$45.89. Talisman Energy Inc., which produces oil and gas in the North Sea, added 54 cents to C$20.70.