CANADA STOCKS-TSX off session high as oil prices retreat
* Toronto index hits highest level since Nov. 12
* Early rally in oil prices credited with market rise
* TSX higher for sixth straight session (Adds details, comments)
By Frank Pingue
TORONTO, Jan 6 (Reuters) - Toronto's main stock index backed away from the two-month highs it was nearing earlier on Tuesday as oil prices turned lower and took some of the steam out of the influential energy sector.
The energy sector rose nearly 4 percent early in the session as Israel's military incursion into Gaza helped to heighten concerns about supply disruptions and lifted the price of crude to over $50 a barrel.
Then oil retreated to just above $48 a barrel and sapped some of the group's momentum, leaving it with a gain of 1.4 percent by late morning.
"We came out of the gate pretty strong as the oil price was up over a buck, and that certainly pushed energy stocks a little higher," said Bruce Latimer, a trader at Dundee Securities. "But the price of oil came back ... and some selling came in on the commodity itself."
At 11:10 a.m. (1610 GMT), the S&P/TSX composite index .GSPTSE was up 39.45 points, or 0.42 percent, at 9,324.06, with six of its 10 main sectors in positive territory. Continued...