Energy stocks rose Tuesday afternoon with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund (XLE) each advancing 0.9%.

The Philadelphia Oil Service Sector Index climbed 2.2%, and the Dow Jones US Utilities Index was little changed.

West Texas Intermediate crude oil declined 1.1% to $63.27 a barrel, and global benchmark Brent decreased 0.7% to $66.19 a barrel. Henry Hub natural gas futures slumped 5.7% to $2.79 per 1 million BTU.

In sector news, Norway's $1.9 trillion sovereign wealth fund reduced its holdings in several oil and gas majors, according to holdings posted on its website. The fund trimmed its position in Exxon Mobil (XOM) to 1.32% from 1.46% at the end of 2024, while its stake in Shell (SHEL) fell to 2.55% from 2.78%.

In corporate news, Oklo (OKLO) is expected to be a main beneficiary of US government support for nuclear energy, which has gained traction since the Trump administration took over in January, Wedbush Securities said in a report. Wedbush raised its price target on Oklo to $80 from $75 and maintained its outperform rating. Oklo shares jumped 8.5%.

Venture Global (VG) expects a decision in one of various arbitration proceedings "imminently." The company said the disputes are in connection with its Calcasieu liquefied natural gas project, which certain customers claimed was delayed in achieving the commercial operations date. Separately, Venture Global reported higher Q2 net income and revenue. The stock rose 3.9%.

Cenovus Energy (CVE) and Indigenous groups in Canada are in talks on acquiring a 2 billion Canadian dollar ($1.45 billion) stake in oil sands producer MEG Energy, Bloomberg reported. Cenovus shares rose 2.4%.