Toronto stocks ended lower Monday, as the energy sector fell back on the lower price of oil.

The S&P/TSX composite index lost 13.04, or 0.12%, to close at 10,885.16.

Volume was 204 million shares.

The Canadian dollar fell 0.61 of a U.S. cent to US84.32 cents, after trading as low US84.24¢ during the day.

Light, sweet crude for October delivery dropped 74 U.S. cents to settle at US$63.34 on the New York Mercantile Exchange. The energy index was down 1.29%.

First Calgary Petroleum fell 56 cents, or 5.62%, to $9.40, while Ultra Petroleum Corp. lost $1.19, or 2.67%, to $43.36.

PetroKazakhstan gained 17 cents, or 0.31%, to $54.27, after the Chinese oil company CNPC announced it would not be spinning off shares in a new company associated with its proposed acquisition of PetroKazakhstan.

Nortel Networks gained 8 cents, or 2.11%, to $3.88. The information sector ended off 0.10%.

Inco announced it reached a tentative contract deal with the United Steelworkers, averting a possible strike at its plant in Thompson, Man. Its shares gained $1.06, or 2.09%, to $51.88.

Canadian National Railway reached an agreement with the International Association of Machinists and Aerospace Workers covering some of the company’s American employees. CNR gained 37 cents, or 0.47%, to $78.70.

The junior S&P/TSX venture exchange finished up 6.94, or 0.35%, to 1,998.16.

In New York, acquisitions news from Oracle, EBay, and Wachovia, and a report that Delta Air Lines would soon file for bankruptcy, dominated the markets, where investors remained cautious.

The Dow Jones industrial average edged ahead 4.38, or 0.04%, to 10,682.94, the S&P500 index dipped down 0.92, or 0.07%, to 1,240.56, while the Nasdaq composite index advanced 7.32, or 0.34%, to 2,182.83.