Energy stocks were higher late Wednesday afternoon, with the NYSE Energy Sector Index adding 0.6% and the Energy Select Sector SPDR Fund (XLE) up 0.5%.

The Philadelphia Oil Service Sector index climbed 2.7%, while the Dow Jones US Utilities index shed 0.6%.

US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 700,000 barrels in the week ended Dec. 6 following a decrease of 3.6 million barrels in the previous week. Excluding inventories in the SPR, commercial crude oil stocks fell by 1.4 million barrels after a 5.1-million-barrel decline in the previous week, a larger drop than the 1.1-million-barrel decrease expected in a survey compiled by Bloomberg.

Front-month West Texas Intermediate crude oil rose 2.7% to $70.44 a barrel while the global benchmark Brent crude contract advanced 2% to $73.65 a barrel. Henry Hub natural gas futures jumped 5.9% to $3.35 per 1 million BTU.

In corporate news, California Water Service's (CWT) improving earnings visibility and higher capital expenditure plans for 2025 to 2028 are catalysts for share gains, BofA Securities said in a note Wednesday. BofA started coverage of the company with a buy rating and a $57 price target. California Water shares added 0.1%.

ReNew Energy Global (RNW) shares surged past 16% after the company said Wednesday it received a nonbinding proposal from a consortium to acquire the stake in the company not already owned by the consortium's members for $7.07 per share in cash.

Centrus Energy (LEU) shares jumped 4.8% after it said Wednesday that its American Centrifuge Operating unit has won a US Department of Energy award to produce low-enriched uranium.

Exxon Mobil (XOM) said Wednesday it's looking to raise capital spending next year, with plans to invest $27 billion to $29 billion, followed by an increase to between $28 billion and $33 billion annually through 2030. Its shares declined 0.5%.