By Steve Gelsi

U.S. energy stocks held on to some of the gains from earlier in the session Monday, with shares of oil service giant Halliburton providing a lift after its profit update.

The sector fell back from highs during the session as a broad rally cooled off.

The Amex Oil Index (XOI) rose 3.1% to 964, led by a gain of 7% for Total SA (TOT), Sunoco (SUN) rose about 5% and Hess Corp. (HES) rose about 4%.

The Amex Natural Gas Index (XNG) rose 1.7% to 379. Chesapeake Energy Corp. (CHK) rose about 3% and Noble Energy (NBL) gained about 5%.

The Philadelphia Oil Service Index (OSXX) rose 3% to 129, led by a rise of 9% from Noble Corp. (NE).

Halliburton (HAL) rose 3% to $18.78 as it put a years-long bribery investigation into its former Kellogg Brown & Root unit behind it with a $383 million settlement. Halliburton also beat Wall Street's earnings targets.

Weatherford (WFT) dipped 1% to $10.73 after it managed to post a 5% increase in fourth-quarter net income despite losses throughout the sector.

Crude prices fell 82 cents to $47.55.

Investors waded into petroleum shares after a positive Barron's article about integrated oil giants presenting a buying opportunity.

Barron's singled out Exxon Mobil (XOM) as the most likely for a dividend increase because of its rich cash position. Shares of Exxon Mobil rose 1% to $78.93.

-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com

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