Energy stocks were lower Wednesday afternoon, with the NYSE Energy Sector Index dropping 2.5% and the State Street Energy Select Sector SPDR ETF (XLE) falling 2.1%.
The Philadelphia Oil Service Sector Index slumped 3.7%, and the Dow Jones US Utilities Index was up 0.2%.
In sector news, ships have started sailing through the Strait of Hormuz under a new scheme by the International Maritime Organization to evacuate trapped vessels, a spokesperson told Reuters on Wednesday. The initiative will enable hundreds of ships with some 11,000 seafarers stranded in the Gulf to sail through Hormuz.
Front-month West Texas Intermediate crude oil fell 3.8% to $70.45 a barrel, and the global benchmark Brent crude contract dropped 3.7% to $73.97 a barrel. Henry Hub natural gas futures rose 2% to $3.24 per 1 million BTU.
US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 15.1 million barrels in the week ended June 19 following a decrease of 17.2 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks declined by 6.1 million barrels after an 8.3-million-barrel decline in the previous week, a larger decrease than the 3.6 million barrel decrease expected in a survey compiled by Bloomberg.
In corporate news, XCF Global (SAFX) said its New Rise Renewables Reno facility is progressing through final system validation and commissioning steps needed before initial production. Its shares were down more than 8%.
Baker Hughes (BKR) and Mantle Reach Power said Wednesday they have signed a new commercial agreement for the large-scale deployment of geothermal energy in North America. Baker Hughes shares were shedding 4.8%.
Sunrun (RUN) shares jumped past 19% after the company agreed with Tesla (TSLA) and Renew Home to deliver more than 16 gigawatts of flexible energy capacity to hyperscalers and utilities.