Energy stocks edged higher Wednesday with the NYSE Energy Sector Index little changed, erasing earlier declines, and the State Street Energy Select Sector SPDR ETF (XLE) up 0.2%.
The Philadelphia Oil Service Sector Index fell 0.4%, and the Dow Jones US Utilities Index rose 0.4%.
In geopolitical news, Iran may prolong its war with the US until President Donald Trump leaves office, CNN reported, citing a top adviser to the commander of Iran's Islamic Revolutionary Guard Corps.
In sector news, US crude oil stocks, including those in the Strategic Petroleum Reserve, rose by 11.3 million barrels in the week ended Friday following a decrease of 400,000 in the previous week. Excluding inventories in the SPR, commercial crude oil stocks rose by 17.4 million after an increase of 2.5 million in the previous week, compared with the drop of 1.8 million expected in a Bloomberg survey.
The Organization of the Petroleum Exporting Countries lowered its global oil demand growth outlook for 2026, while projecting a stronger rebound for next year than estimated.
The International Energy Agency projected a larger decline in global oil demand this year than estimated as the continued closure of the Strait of Hormuz weighs on consumption.
West Texas Intermediate crude oil shed 0.3% to $82.95 a barrel, and global benchmark Brent fell 0.3% to $88.65 a barrel. Henry Hub natural gas futures rose 1.1% to $2.80 per 1 million BTU.
In corporate news, Fervo Energy (FRVO) shares fell 17%. The company reported a Q2 net loss of $0.38 per diluted share, narrowing from a loss of $1.31 per share a year earlier. Three analysts polled by FactSet expected a loss of $0.11 per share.
Energy Fuels (UUUU) said shareholders of Australian Strategic Materials approved the US company's planned takeover. Energy Fuels shares fell 2%.
Borr Drilling (BORR) shares fell 3.6% after the company reported a Q2 loss as revenue declined.