CANADA STOCKS-TSX falls as energy shares slump with oil prices

Wed Jun 7, 2017 5:08pm EDT
 
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(Adds strategist quotes, background details on energy and updates prices)

* TSX closes down 92.42 points, or 0.6 percent, at 15,372.14

* Eight of the index's 10 main groups end lower

* Energy falls to an 11-month low, down 3.4 percent

By Fergal Smith

TORONTO, June 7 (Reuters) - Canada's main stock index fell on Wednesday as a sharp drop in oil prices put pressure on energy shares, which slumped to an 11-month low, while investors weighed political uncertainty ahead of key events on Thursday.

U.S. crude prices fell more than 5 percent to $45.75 a barrel after the U.S. government reported an unexpected increase in inventories of crude and gasoline.

"It sheds light on the challenge that the oil markets are facing. OPEC can cut, but it is having very little impact on the overall price as the U.S. is offsetting production cuts out of the Middle East with production increases of its own," Philip Petursson, chief investment strategist at Manulife, said in a telephone interview.

Some of the biggest weights on the index were Canadian Natural Resources Ltd, which fell 2.7 percent to C$38.54 and Suncor Energy Inc, which was down 2.6 percent at C$41.14.   Continued...