TORONTO - The Toronto stock market ended the Friday session lower -- but higher for the week -- with commodity stocks taking the brunt of selling pressure.

The S&P/TSX composite index fell 69.15 points to 10,644.96. The energy sector moved down just over one per cent as the July crude contract on the New York Mercantile Exchange came off a seven-month high to slip 64 cents to US$72.04 a barrel on a sign of falling demand.

The dip came as the Organization of Petroleum Exporting Countries forecast Friday that demand for its crude this year would average 28.6 million barrels a day -- 2.2 million barrels less than in 2008.

"The big issue for the Canadian markets, because it's a huge whacking chunk of our market, has been energy," said Blair Falconer, portfolio manager at HSBC Securities.

"And after two or three weeks of straight going north with crude oil, you have to expect that sooner or later you're going to get a bit of a pullback."

EnCana Corp. (TSX:ECA) fell $1 to C$61.99.

BlackWatch Energy Services Corp. (TSX:BWT) shares jumped 45 cents or 85 per cent to 98 cents after the oilfield services company announced a recapitalization plan and named a new management team on Thursday.

The TSX moved up 75.67 points or 0.7 per cent this past week, its fourth straight weekly gain as a powerful spring rally moved into its fourth month continued to chug along on hopes for an economic recovery by the end of the year.

However, investors are starting to wonder about the sustainability of the rally while sentiment has been weighed down this week by rising U.S. Treasury yields that have raised worries about higher interest rates.

The TSX Venture Exchange added 6.49 points to 1,154.81 while a stronger U.S. dollar sent the Canadian dollar down 1.2 cents to 89.45 cents US.

New York markets were little changed at the end of a tepid week, failing to get a boost from data showing that U.S. consumer confidence continued to climb in June.

The Dow Jones industrial average moved 28.34 points higher to 8,799.26. The Nasdaq composite index declined 3.57 points to 1,858.8 while the S&P 500 index added 1.32 points to 946.21.

Also, while the current conditions component gained, expectations fell for the first time since February.

Gains on stock markets have been spotty this week as investors wonder if a pause is in order after the TSX ran up 41 per cent since the March 9 lows.

The S&P has gained 39 per cent and the Dow has jumped 34 per cent since the market bottomed in early March.

"I think that if we were to go sideways across the summer, into Labour Day, that would not be unexpected," added Falconer.

"Even a pullback of say three to five per cent on the overall market, would give us enough of a pause for being overbought that you could then continue in the fall and get a bit of a rally then."

Rising bond yields have been a worry as investors became concerned that rising interest rates and weakening demand for U.S. government debt could derail a potential recovery in the economy.

The Toronto market also came under pressure from declines in the high-flying base metals sector, which had rocketed up 150 per cent since early March. It was off 1.5 per cent Friday as the July copper contract in New York fell 7.15 cents to US$2.3735 a pound with Teck Resources Ltd. (TSX:TCK.B) closed down 35 cents to $20.34.

The gold sector faded almost two per cent as the August bullion contract moved down $21.30 to US$940.70 an ounce. Goldcorp Inc. (TSX:G) dropped 93 cents to C$39.05.

Centerra Gold Inc. (TSX:CG) shares stepped back 82 cents or 11.2 per cent to $6.48 after it said its operating licence for the Boroo Mine in Mongolia has been suspended for up to three months after a report from a government inspection agency that visited the mine.

In other corporate news, British bank Barclays reported that it has sold its Global Investment unit to U.S. fund manager BlackRock Inc. for US$13.5 billion.

Uranium One Inc. (TSX:UUU) shares ran up 15 cents to $2.83 after it said its joint venture with Kazatomprom will be honoured, according to a statement by the Kazakh state uranium giant whose former president is part of a government probe on allegations of embezzlement.

Drug maker Patheon Inc. (TSX:PTI) reported Friday a profit of US$500,000 profit, reversing a year-ago loss of $8-million as its restructuring and cost-cutting program continued. Its shares dipped 13 cents to $2.67.