TORONTO (Bloomberg) — Canadian stocks fell for a second day as energy producers declined on a drop in crude oil prices. EnCana Corp., the country’s biggest natural gas producer, paced the retreat.“Oil’s a negative given that it’s almost 30 percent of the market,” said Gavin Graham, who helps manage about $5.1 billion as chief investment officer at Guardian Group of Funds in Toronto. “Commodities are coming down.”

The Standard & Poor’s/TSX Composite Index slid 81.07 or 0.6 percent, to 12,785.20 in Toronto. The drop was limited by gains in telephone stocks, after BCE Inc. sold a satellite unit for a higher-than-expected price.

Crude oil for January delivery closed 1.9 percent lower at $62.21 a barrel in New York, as warmer-than-normal weather in most of the US curbed heating-fuel consumption.

EnCana fell C$2.14 to C$54.95. Suncor Energy Inc., the world’s second-largest oil-sands miner, declined C$3.36 to C$90.18. Petro-Canada, the country’s third-biggest oil and gas producer, slid C$1.82 at C$47.19.

A gauge of energy stocks lost 1.9 percent. The group has a 28 percent weighting in the benchmark.

Income trusts declined after Finance Minister Jim Flaherty said on December 15 he will stick to plans to tax the high-yielding securities for the first time in four years. Some trusts had been hoping for an exemption from the tax or an extension of the four- year moratorium.

Northland Power Income Fund declined 88 cents, or 6.4 percent, to C$12.97 after being cut to “market perform” from “outperform” by analyst Karen J. Taylor at BMO Capital Markets.

Connors Brothers Income Fund lost 56 cents, or 5 percent, to C$10.74. The canned-fish products company was downgraded to “sell” from “hold” by Barbara Gray at Blackmont Capital.

Penn West Energy Trust, the largest oil and gas income fund by output, lost 80 cents to C$35.90. An index of trusts fell 1.2 percent, the most in four weeks. More than half of the 73 trusts in it are energy-related.

“To be a bull on energy stocks you have to believe in higher oil prices,” said Stephen Gauthier, who oversees C$20 million at Gauthier & Cie. in Montreal. “I don’t. We’re going to see $45-oil before it’s $80. Demand is slowing for commodities. I’m negative on the cyclical stocks right now.”

Analysts are expecting prices for some metals to decline in 2007 as the economy in the U.S., the world’s second-largest consumer of copper. Copper prices reached a record in May.

A measure of raw-materials shares retreated two percent on concern that prices will fall from records next year. Copper may drop 15 percent next year to $2.61 a pound on average from $3.06 this year.