Energy stocks advanced Wednesday afternoon with the NYSE Energy Sector Index rising 1.8% and the Energy Select Sector SPDR Fund (XLE) adding 1.1%.

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

US crude oil stocks, including those in the Strategic Petroleum Reserve, rose by 800,000 barrels in the week ended Friday following an increase of 2.8 million in the previous week. Excluding inventories in the SPR, commercial crude oil stocks rose by 500,000 barrels after a gain of 2.6 million in the previous week, compared with the increase of 945,000 expected in a survey compiled by Bloomberg.

West Texas Intermediate crude oil climbed 1.7% to $62.37 a barrel, and global benchmark Brent advanced 1.7% to $65.79 a barrel. Henry Hub natural gas futures fell 2.9% to $3.23 per 1 million BTU.

In corporate news, Phillips 66 (PSX) shareholder Elliott Investment Management said findings from its March survey of the oil company's institutional investors showed they "share Elliott's frustration" with the "underperformance and lack of a compelling strategic direction." Phillips 66 shares rose 0.7%.

Woodside Energy (WDS) is in talks with Uniper on the potential supply of liquefied natural gas. Woodside shares rose 0.1%.

Sunnova Energy International (NOVA) faces difficulties securing fresh capital from creditors to avoid bankruptcy, Bloomberg reported, citing people familiar with the matter. Sunnova shares dropped 17%.