Toronto stocks tumbled almost 2% on Thursday, as a sharp drop in the price of oil pulled energy shares lower.

The S&P/TSX composite index fell 282.98 points, or 1.88%, to close at 14,790.15. Eight of the 10 TSX main groups finished lower.

The heavyweight energy group plummeted 4.64% as U.S. oil prices tumbled 3.5% to US$131.93 a barrel on the prospect of lower demand from China, which announced it would raise domestic gasoline and diesel prices.

In Toronto, EnCana Corp. shares dropped $5.35, or 5.5% on the day, finishing at $92.06. Petro-Canada fell $2.51, or 4.3%, to close at $56.54.

The resource-laden materials group gave up 1.46% and financials fell 0.98%.

The junior S&P/TSX Venture composite index shed 15.39 points, or 0.59%, to 2,613.41.


The Canadian dollar gained 0.28 of a cent to close at US98.50¢.

A report from Statistics Canada showed that consumer prices rose 2.2% in May, up from a 1.7% rise in April, on sharply higher gasoline prices.

In New York, U.S. stocks rose on Thursday as a drop in oil prices fueled investor optimism about consumer spending, driving shares of transportation and retailers sharply higher.

The Dow Jones industrial average up 34.03 points, or 0.28%, at 12,063.09. The S&P 500 ended up 5.02 points, or 0.38%, at 1,342.83. The tech-heavy Nasdaq composite index finished up 32.36 points, or 1.33%, at 2,462.07.