Energy stocks were higher Thursday afternoon, with the NYSE Energy Sector Index rising 1.3% and the State Street Energy Select Sector SPDR ETF (XLE) up 1%.
The Philadelphia Oil Service Sector Index was climbing up 3.5%, and the Dow Jones US Utilities Index was shedding 0.9%.
In geopolitical news, Iran has made a concerted diplomatic push with Gulf states, warning them explicitly that Tehran will hit their oil, power and water plants unless they convince President Donald Trump to end US strikes on Iran, Reuters reported Thursday. Iran and Oman are close to finalizing a proposed framework for commercial shipping through the Strait of Hormuz, Tehran's deputy foreign minister said, according to a CNN report Thursday. However, the agreement would not automatically reopen the waterway, he warned, according to the news report. The deal would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a senior Iranian source and two regional officials told Reuters on Wednesday.
Front-month West Texas Intermediate crude oil rose 3.5% to $77.83 a barrel, and the global benchmark Brent crude contract added 4.2% to $82.77 a barrel. Henry Hub natural gas futures fell 1.1% to $2.66 per 1 million BTU.
In sector news, US natural gas stocks rose by 33 billion cubic feet in the week ended July 31, above the 30 billion increase expected in a survey compiled by Bloomberg and following an increase of 28 billion cubic feet in the previous week.
In corporate news, BP (BP) has agreed to acquire Woodside Energy's (WDS) 70% stake in the Calypso gas project in Trinidad and Tobago. Following the close of the deal, BP will own 100% of the early-stage, deepwater natural gas project and will assume operatorship, it said. BP shares rose 2.2%, and Woodside added 2.9%.
ConocoPhillips (COP) shares rose 0.9% after it reported higher Q2 adjusted earnings and revenue. The company also said Chief Financial Officer Andy O'Brien will succeed Ryan Lance as president and chief executive officer, effective Sept. 1.
Canadian Natural Resources (CNQ) shares gained 1.5% after it posted higher Q2 adjusted earnings and revenue.