Energy stocks dropped late Tuesday afternoon with the NYSE Energy Sector Index falling 0.1% and the Energy Select Sector SPDR Fund (XLE) down 0.7%.

The Philadelphia Oil Service Sector index lost 1.2%, and the Dow Jones US Utilities index shed 0.8%.

West Texas Intermediate crude oil rose 0.1% at $68.50 a barrel, while global benchmark Brent shed 0.5% to $71.26 a barrel. Henry Hub natural gas futures jumped 4.7% to $4.32 per 1 million BTU.

In sector news, the Canadian province of Ontario will levy a 25% export tax on the electricity it sends to 1.5 million homes in Michigan, Minnesota and New York in response to President Donald Trump's tariffs, The Wall Street Journal reported, citing an interview with Ontario Premier Doug Ford.

In corporate news, the US Treasury Department ordered Chevron (CVX) to wind down operations in Venezuela within a month. Chevron shares eased 0.2%.

Phillips 66 (PSX) faces an escalating proxy fight with Elliott Investment Management after the activist investor nominated seven directors to the energy company's board. Phillips 66 shares fell 1.7%.

Vistra's (VST) current valuation doesn't fully reflect the strength of its core business, which remains well-positioned to grow regardless of data center deals, BofA Securities said. Vistra shares gained 3.4%.

BP (BP) plans to appoint two new directors as part of its shift back to oil and gas, the Financial Times reported. BP shares shed 0.7%.