Toronto stocks lower as oil prices retreat

*TSX lower as oil and gas shares fall, materials mixed

*Finanicals, industrials provide support

TORONTO, July 7 (Reuters) - The Toronto Stock Exchange's energy-heavy main index was lower late on Monday morning as oil prices fell.

Oil and gas shares were down 0.6 percent as oil slipped below $141 a barrel. Materials shares inched up 0.3 percent after slipping earlier in the session amid weakness in some metals prices.

Oil, which has gained almost 50 percent this year, retreated from record highs set last week as traders anticipated reduced tensions between Iran and the West over Iran's nuclear program. The oil pullback inspired a rally in U.S. stocks.

"I think it is a little bit of relief as tensions with Iran diminished and oil prices have pulled back in conjunction with that," said Julie Brough, vice president at Morgan Meighen & Associates.

"I do believe if we got a real correction in energy prices it would be very, very good for the U.S. (stock) market."

In Toronto, EnCana Corp (ECA.TO) slipped 70 Canadian cents, or 0.8 percent, C$88.18, while Husky Energy (HSE.TO) shed 41 Canadian cents, or 0.9 percent, at C$46.49.

The S&P/TSX composite index .GSPTSE was down 18.28 points, or 0.13 percent, at 13,992.11, after rising at the outset. Overall, four of the index's 10 main sectors were down.

Economic woes and concerns over rising inflation hit markets on both sides of the border hard last week, helping to trim 3.3 percent from Toronto's benchmark index and sending the U.S. markets into bear territory.

Industrials provided some support in Toronto on Monday, up 0.5 percent, while financials were up 0.2 percent.

Angiotech Pharmaceuticals Inc (ANP.TO) fell 13 Canadian cents, or 4.4 percent, to C$2.80 after it said it plans to establish separate operating and royalty businesses.

BCE Inc (BCE.TO) (BCE.TO), Canada's biggest telecom company, was down 24 Canadian cents, or 0.61 percent, at C$39.40, after rising 12.8 percent on Friday after the company said its C$34.8 billion takeover by a group led by the Ontario Teachers' Pension Plan would go ahead at the agreed C$42.75-per-share purchase price.

($1=$1.02 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)