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Sector Update: Energy Stocks Decline Wednesday Afternoon

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Energy stocks were lower Wednesday afternoon, with the NYSE Energy Sector Index falling 1.7% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 1.9%.

The Philadelphia Oil Service Sector Index declined 2.1%, and the Dow Jones US Utilities Index shed 1.3%.

In geopolitical news, Iran and Oman have reached an agreement on the geographical coordinates of a proposed shipping route through the Strait of Hormuz, Bloomberg reported Wednesday, citing a statement from Iran's Foreign Ministry Spokesman Esmail Baghaei.

Front-month West Texas Intermediate crude oil fell 1.6% to $74.52 a barrel, and the global benchmark Brent crude contract decreased 0.8% to $78.73 a barrel. Henry Hub natural gas futures rose 0.2% to $2.69 per 1 million BTU.

US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 400,000 barrels in the week ended July 31 following a decrease of 11.0 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks rose by 2.5 million barrels after a 7.2-million-barrel decline in the previous week, compared with the 1.5-million-barrel decrease expected in a survey compiled by Bloomberg.

In corporate news, MGE Energy (MGEE) shares were shedding 0.3% after the company reported its Q2 results.

Natural Resource Partners (NRP) shares gained 8.8% after it reported Q2 financial results.

BP's (BP) push to strengthen its balance sheet is set to pick up speed in H2, helped by firmer refining margins and ongoing asset sales, RBC Capital Markets said in a note. BP shares were down 2%.

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Sector Update: Energy Stocks Decline Late Afternoon

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Sector Update: Financial Stocks Rise Late Afternoon

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