Toronto stocks closed higher Thursday, but a 2% drop among energy issues tempered the gain. The S&P/TSX composite index closed up 24.62 points, or 0.3%, at 8,343.60. Volume was 286 million shares.

A drop in oil prices hit energy stocks and prevented the Toronto index from matching the gains on Wall Street.

Oil prices declined overnight, after U.S. Energy Secretary Spencer Abraham said the United States sees signs of extra oil supplies from Mexico, Nigeria, Russia and Saudi Arabia. Crude oil futures for July delivery dropped US$1.26 to settle at US$39.44 in New York.

Among energy issues, Petro-Canada was down $1.92, or 3%, at $58.81 and EnCana Corp. was off $1.67, or 3%, at $53.50.

All but two of the TSX index’s main groups moved higher, led by a 1.95% boost among technology issues.

Nortel Networks rose 35¢, or 7%, to $5.24 following Wednesday’s news that former Canadian finance minister John Manley would be joining the company’s board.

The financial group gained 0.4% after some of Canada’s major banks reported mixed results.

In New York, the Dow Jones industrial average rallied 95.31 points to 10,205.20, while the broader S&P 500 index gained 6.32 points to 1,121.26.

The tech-laced Nasdaq composite index gained 8.35 points to 1,984.50, its fifth straight day of gains.