01:30 PM EDT, 09/26/2024 (MT Newswires) -- Energy stocks were lower Thursday afternoon, with the NYSE Energy Sector Index shedding 1.6% and the Energy Select Sector SPDR Fund (XLE) falling 1.8%.

The Philadelphia Oil Service Sector index slumped 3.5%, and the Dow Jones US Utilities index was down 0.4%.

The Financial Times reported Thursday that Saudi Arabia is ready to abandon its official price target and is prepared for a period of lower oil prices as OPEC+ closes in on returning voluntary cuts to the market in December. Meanwhile, an agreement between Libya's two ruling factions is also weighing on prices. The two competing governments reached an agreement on an interim governor for the country's central bank, Bloomberg reported.

Natural gas traded at a three-month high early on Thursday as Hurricane Helene's passage through the Gulf of Mexico cuts supply from the region.

US natural gas stocks rose by 47 billion cubic feet in the week ended Sept. 20, smaller than the 52 billion gain expected in a survey compiled by Bloomberg as of 7:40 am ET and following an increase of 58 billion cubic feet in the previous week.

Front-month West Texas Intermediate crude oil was falling 3% to $67.61 a barrel while the global benchmark Brent crude contract was dropping 2.6% to $71.54 a barrel. Henry Hub natural gas futures fell 2.6% to $2.57 per 1 million BTU.

In corporate news, NRG Energy ( NRG ) on Wednesday raised its 2024 guidance, citing "robust financial and operational execution throughout the year." Its shares popped 1.6%.