Energy stocks were lower late Wednesday afternoon, with the NYSE Energy Sector Index falling 1.7% and the State Street Energy Select Sector SPDR ETF (XLE) dropping 2%.

The Philadelphia Oil Service Sector Index rose 0.2%, while the Dow Jones US Utilities Index added 0.8%.

Front-month West Texas Intermediate crude oil declined 0.8% to $107.77 a barrel, and the global benchmark Brent crude contract dropped 5.7% to $104.91 a barrel. Henry Hub natural gas futures fell 2.2% to $3.05 per 1 million BTU.

In corporate news, American Water Works (AWK) shares fell 1.2% after Argus cut the company's price target to $140 from $160, while keeping its buy rating.