Shares of energy companies rose despite a slide in oil prices as investors rotated out of highly valued sectors like technology into laggards such as energy.
The energy sector is "completely out of favor, but the world's infrastructure still runs on fossil fuels and the amount of time it'll take to transform that and deliver energy at affordable price with affordable delivery systems is at least a decade," said Richard Steinberg, chief market strategist at wealth-management firm The Colony Group.
While Mr. Steinberg expects most large energy stocks to eventually rebound, he compared investing in the sector currently to "catching a falling knife."
The number of active oil rigs in the U.S. rose by six in the latest week to 189, the second weekly increase, according to the latest tally from oilfield services company Baker Hughes.
Oil futures fell by more than 4% to around $37 a barrel, as traders braced for another hit to demand after the up-tick in Covid-19 cases that has seen President Trump diagnosed with the virus.
Natural-gas futures fell 13% on the week for their biggest weekly retreat in almost a year.
South African energy concern Sasol said would sell its 50% interest at the Lccp Base Chemicals Business in Louisiana to a unit of LyondellBasell Industries for $2 billion.
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(END) Dow Jones Newswires