The Toronto stock market closed slightly lower Friday. Energy shares led the retreat as oil price fell.

The S&P/TSX composite index was down 25.05 points, or 0.21%m at 12,035.57. On the week, the benchmark gained 127 points, or 1.1%.

On the TSX, the energy sector was down 0.75% after the OPEC cartel announced Friday that it would cut output by a greater-than-expected 1.2 million barrels a day to reverse a three-month price slide.

The December crude contract on the New York Mercantile Exchange down $1.68 to US$56.82 a barrel, as traders questioned whether OPEC members would comply.

Petro Canada shares slid 40¢ to $46.30.

Shares in Husky Energy Inc. were 10¢ lower to $68.01 after the company said third-quarter profit increased 23% to $682 million.

Railway stocks led the industrials group to a 1.3% gain.

Canadian National Railway was the sessions biggest gainer by weight, jumping $1.46, or 2.9%, to $52.31 a day after it posted forecast-beating profits.

Canadian Pacific Railway added 99¢, or 1.6%, $61.36.

The S&P/TSX Venture composite index edged up 3.28 points, or 0.13%, to 2,456.69.

The Canadian dollar closed up 0.24 of a cent to US88.89 cents. Statistics Canada reported that the annual inflation rate fell to 0.7% in September from 2.1% in August as gasoline prices tumbled.

However, core inflation – which excludes volatile items like fuel and food – came in well above expectations, rising 0.5% over August or an annualized rate of 1.7%.

In New York, the Dow Jones industrial average fell 9.36 points to 12,002.37 after closing above 12,000 Thursday for the first time.

Dow component Caterpillar announced that third-quarter profit climbed 15%, but the heavy-equipment maker lowered its full-year earnings forecast. Its dropped 14.25% to US$59.20.

That helped outweigh a report from Google in which the reported a 92% quarterly profit rise on 70% sales growth. Google shares were 7.9% higher to US$459.67.

The tech-heavy Nasdaq composite index added 1.36 points to 2,342.3, while the S&P 500 rose 1.64 points to 1,368.60.

For the week, the Dow gained 0.35%, S&P 500 rose 0.22% and the Nasdaq shed 0.64%.