Energy stocks were higher Thursday afternoon, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund (XLE) each rising about 1.2%.

The Philadelphia Oil Service Sector Index climbed 2.1%, while the Dow Jones US Utilities index eased 0.2%.

Front-month West Texas Intermediate crude oil was rising 1.7% to $78.32 a barrel while the global benchmark Brent crude contract was advancing 1.8% to $81.18 a barrel. Henry Hub natural gas futures were 1.7% higher at $2.26 per 1 million BTU.

US natural gas stocks fell by 6 billion cubic feet in the week ended Aug. 9, compared with the 1 billion cubic feet increase expected in a survey compiled by Bloomberg and following an increase of 21 billion cubic feet in the previous week. Stocks at 3.264 trillion cubic feet were 6.8% higher than in the comparable week a year ago and 13% above their 5-year average.

In corporate news, HNR Acquisition (HNRA) shares were up 0.6%. The upstream energy company said it's making upgrades to its electrical systems that will increase capacity for current needs and future growth.

Chevron (CVX) has agreed to pay $550 million over the next 10 years to the City of Richmond in California in exchange for the city's withdrawal of a ballot initiative to add a new tax, the city council said. Chevron shares were rising 1.8%.

BW LPG (BWLP) shares were down 0.5%. The firm said it struck a deal to buy 12 Very Large Gas Carriers from Avance Gas for $1.05 billion.