Toronto stocks were dragged lower by financial shares on Monday as part of the continuing fallout from the credit crunch in the United States.

The S&P/TSX composite fell 74.85 points, or 0.56%, to 13,299.30. Six of the 10 main TSX groups finished lower.

The heavyweight energy sector gained 0.8%. Crude-oil futures closed higher Monday as pipeline attacks in Nigeria and comments by Iran’s president fed concerns over global oil supplies, helping to lift prices by more than $1 per barrel.

Crude oil for September delivery closed up US$1.47 at US$124.73 a barrel on the New York Mercantile Exchange.

In Toronto, Canadian Oil Sands Trust rose $1.39, or 2.9%, to $48.91, while Canadian Natural Resources climbed $1.02 to $78.74.

Materials added 0.5%, with help from its gold producers as Gold for August delivery rose 90¢ to close at US$927.70 an ounce on the Nymex.

Barrick Gold added 75¢, or 1.7%, to $45.44, while Goldcorp advanced 97¢ at $41.97.

The junior S&P/TSX Venture composite index slipped. 1.67 points, or 0.08% to 2,186.50.

The Canadian dollar eased down 0.33¢ from Friday’s close, finishing at US97.75.

In New York, U.S. stocks tumbled as fear of more credit and housing market turmoil battered financial shares.

News that federal regulators seized two more failed U.S. banks late last week that triggered Monday’s sharp selloff in financial shares.

The Dow Jones industrial average sank 239.61 points, or 2.11%, to 11,131.08. The S&P 500 dropped shed 23.39 points, or 1.86%, to 1,234.37. The tech-heavy Nasdaq composite index fell 46.31 points, or 2%, to 2,264.22.