12/18/2014 03:07 EST | Updated 02/17/2015 05:59 EST

TSX up 56 points but oil heads back down to $54

New York stocks shot sharply higher on Thursday, reassured by the Fed’s interest rate outlook delivered Wednesday.

The TSX also moved higher, up 56 points in mid-afternoon, but the continuing fall of oil prices wiped out an earlier triple-digit advance.

The West Texas Intermediate contract traded in New York declined another $2.07 to $54.43 US a barrel. Brent, the most international oil contract, was again below $60 US, trading at $59.53.

A fall in world demand for oil and a glut in supply have made oil prices volatile. Traders aren’t certain how low prices will go and keep testing for a bottom.

The TSX S&P index was up 55 points at 14,275 at 3 p.m. ET

Energy stocks dragged down the market as the price of crude oil turned lower again after stabilizing over the past two days.

The Canadian dollar moved higher to 86.21 US.

The Dow was up 290 points or 1.7 per cent to 17,647 at 2.30 ET. The S&P 500 moved 32 points to 3245 and the Nasdaq lifted 84 points to 4728.

The U.S., which is a net importer of oil and has a broader-based economy, is less sensitive to crude oil movements.

Traders in New York felt more confident about the pace of future interest rate hikes after the U.S. central bank said it could be "patient" in deciding when to hike rates.

Chair Janet Yellen forestalled any suggestion of a rise in rates in the first quarter of 2015, meaning rates likely won’t rise until the spring of 2015.