* TSX up 0.2%
* Energy stocks rise on oil prices
* CPI, retail sales data on watch
Nov 20 (Reuters) - Canada's main stock index erased early losses to inch up on Monday as gains in energy stocks offset a plunge in shares of First Quantum Minerals after the miner further reduced ore processing at its copper mine in Panama.
At 10:39 a.m. ET (1539 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 29.76 points, or 0.2%, at 20,205.53.
The energy sector climbed 0.8% as oil futures rose over 2%, extending gains on the prospect of OPEC+ deepening supply cuts to shore up prices.
First Quantum Minerals
sank 5.4% after the miner said it has further reduced ore processing at its mine in Panama, as blockades at a local port have disrupted shipments of supplies needed to power operations.
The miner is considering putting its Cobre Panama mine in care and maintenance mode from Nov. 23, two sources familiar with the discussions
The materials sector fell lower in early trade on drag from First Quantum shares, but the sectoral index, which houses miners and fertilizers, pared losses later to edge up 0.1% aided by higher copper prices.
Investor attention will turn to domestic consumer inflation data on Tuesday, which is expected to show that the annual inflation rate in October slowed to 3.2% from 3.8% in September, according to a Reuters poll.
"We're seeing basically inflation head lower around the world, and I don't think Canada's inflation data will be any different," Jennifer Lee, senior economist at BMO Capital Markets said.
"But like everywhere else, the core CPI components are going to remain sticky," Lee added.
Domestic retail sales data for September is due later in the week on Friday and would offer market watchers further clues on the BoC's interest rate path.
Canada's economy is flirting with recession, and the downturn could worsen now that a period of rapid growth in the United States is expected to end, raising bets on the BoC shifting to interest rate cuts sooner than previously thought. (Reporting by Siddarth S in Bengaluru; Editing by Tasim Zahid)