* The energy sector dropped 0.6% after crude prices extended losses as investors braced for increased supplies after a compromise deal between leading producers and as U.S. fuel stocks rose.[O/R]
* At 9:41 a.m. ET (1341 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 35.24 points, or 0.17%, at 20,112.
* Canadian home sales fell 8.4% in June from May, with the average selling price inching down, data from the Canadian Real Estate Association showed.
* Forest products company Canfor Corporation fell 2.9%, the most on the TSX, and the second biggest decliner was oil producer MEG Energy Corp, down 2.2%.
* The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.1% as gold futures rose 0.1% to $1,826.1 an ounce.[GOL/]
* On the TSX, 63 issues were higher, while 151 issues declined for a 2.40-to-1 ratio to the downside, with 11.06 million shares traded.
* The largest percentage gainer on the TSX was OrganiGram Holdings Inc, which jumped 3.7%, as the pot producer launched a cannabis innovators panel.
* Its gains were followed by mining company Lithium Americas Corp, which rose 3.4%.
* The most heavily traded shares by volume were Bombardier Inc, Horizonte Minerals PLC and Suncor Energy Inc.
* The TSX posted no new 52-week highs and no new low.
* Across all Canadian issues there were 23 new 52-week highs and five new lows, with a total volume of 24.51 million shares.
(Reporting by Amal S in Bengaluru; Editing by Amy Caren Daniel)
