One day after topping the 15,000 mark, Toronto markets sank mid-afternoon as crude prices hit a record high of more than US$133 a barrel and the U.S. Federal Reserve signals further rate cuts unlikely.

The S&P/TSX Composite index closed down 256.97 points, or 1.71%, at 14,790.37 as eight of the ten major TSX groups fell today.

The financials group was a weak spot today, closing down 1.53% for the day.

Bank of Nova Scotia shares fell 97¢, or 1.99%, to end at $47.77 and Royal Bank of Canada stock tumbled $1.10, or 2.18%, to close at $49.41.

Crude prices soared, but the energy group closed down 1.46%.

Crude oil for July delivery closed up US$4.19, or 3.3%, at US$133.17 a barrel on the New York Mercantile Exchange, after the U.S. Energy Department reported that inventories fell by more than five million barrels.

Talisman Energy Inc. shares closed down $1.25, or 5.02%, at $23.65, after it announced it plans to spend up to $1.3 billion by the end of 2009 on evaluating unconventional natural gas potential in it’s North American land holdings.

Shares in market heavyweight Encana Corp. ended down $2.34, or 2.44%, at $93.61 and Imperial Oil shares lost 53¢, or 0.87%, to end at $60.42.

The materials group fell 2.21%, while the gold sub-index fell 0.80%.

Gold for June delivery gained US$8.40, to close at US$928.60 an ounce on the Nymex after reaching a high of $931 earlier in the day.

Eldorado Gold Corp. shares closed up 31¢, or 3.94%, at $8.17 while Iamgold Corp. stock closed down 16¢, or 2.47%, at $6.32.

The Canadian dollar closed at US1.0162¢, after Statistics Canada reported that higher gasoline prices pushed the consumer price index 1.7% higher in April, compared with the same month last year.

In Canadian corporate news, Nortel Networks Corp. announced it is issuing US$500 million worth of notes bearing interest of 10.75% in order to repay lower-interest convertible debt which is set to come due in September.

The junior S&P/TSX Venture composite index closed up 10.62 points, or 0.40%, at 2,671.76.

In New York, markets tumbled after the minutes of the U.S. Federal Reserve meeting revealed the central bank likely will not cut interest rates further as inflation concerns are on the rise.

The Dow Jones Industrial Average closed down 227.49 points, or 1.77%, at 12,601.19.

The S&P 500 closed down 22.69 points, or 1.61%, to close at 1,390.71.

Meanwhile, the tech-heavy Nasdaq sank 43.99 points, or 1.77%, to close at 2,448.27.