TSX energy sector falls 5 per cent as oil drops below US$80 per barrel

The S&P/TSX Composite Index’s energy subgroup came under significant pressure in Friday trading, down more than five per cent as underlying energy prices fell.

Not a single constituent among the subgroup’s 38 members were in positive territory, with Birchcliff Energy Ltd, Spartan Delta Corp. and MEG Energy Corp. leading the declines, all down more than nine per cent as of 10:55 a.m. EDT.

The declines come as growth concerns and the stronger U.S. dollar put pressure on oil prices. The U.S. Federal Reserve has signalled it is willing to tolerate a recession if it means getting sky-high inflation under control, sending the U.S. dollar to a new record high, making commodities priced in greenbacks more expensive for investors.