Energy stocks fell Wednesday afternoon with the NYSE Energy Sector Index decreasing 0.5% and the Energy Select Sector SPDR Fund (XLE) shedding 0.7%.

The Philadelphia Oil Service Sector index eased 0.2%, while the Dow Jones US Utilities index added 0.1%.

US crude oil stocks, including those in the Strategic Petroleum Reserve, fell by 2.3 million barrels in the week ended Friday following an increase of 4.6 million in the previous week. Excluding inventories in the SPR, commercial crude oil stocks fell by 2.3 million after a gain of 4.6 million in the previous week, compared with a 2.4 million increase expected in a survey compiled by Bloomberg.

West Texas Intermediate crude oil declined 0.3% to $68.74 a barrel, while the global benchmark Brent crude contract shed 0.5% to $72.68 a barrel. Henry Hub natural gas futures fell 3.9% to $4.01 per 1 million BTU.

In corporate news, Chevron (CVX) is open to buying Phillips 66's (PSX) stake in a chemicals joint venture that activist investor Elliott Investment Management is pushing the oil refiner to sell, Bloomberg reported. Chevron shares fell 0.6% and Phillips 66 dropped 1.3%.

NRG Energy (NRG) shares jumped 11% after it said Wednesday it joined GE Vernova (GEV) and Kiewit's Industrial unit to form a venture to boost electricity generation capacity to meet growing demand from computing and generative AI. GE Vernova shares popped nearly 6%.

BP (BP) on Wednesday unveiled a "fundamentally reset strategy" in which it will seek to reduce and reallocate capital expenditures, increase oil and gas investments and cut its share buybacks in an effort to increase cash flow. BP shares were falling 1.6%.