Energy stocks reversed an early slump Monday despite oil plunging to the lowest level since 1986 as traders fled the May contract ahead of Tuesday’s expiration.

The S&P 500 energy index is flat after falling over six per cent in early trading. Toronto’s stock gauge is also positive after retreating during Monday’s open.

Despite oversupply and lack of global crude demand, some investors are attempting to call a bottom. “The end to the oil bloodbath is in sight,” said Eric Nuttall, a portfolio manager at Ninepoint Partners in Toronto.

“At some point energy stocks will begin to diverge from weak short-term pricing as the market starts to look beyond COVID-19 to a significantly tighter market,” he added.

U.S. hydraulic fracturing service provider Halliburton Co. plans to cut spending to a four-year low as the company navigates what is shaping up to be the worst-ever oil bust.

Meanwhile, some shipping stocks are outperforming Monday, with Teekay Corp. and Scorpio Tankers Inc. both rising over four per cent. Saudi Arabia’s crude exports ran at a high pace in the first half of April as the kingdom maximized sales before a new OPEC+ supply cut begins in May, Bloomberg tanker tracking showed.

Natural gas drillers including Antero Resources Corp. are also experiencing strong gains, as analysts see associated gas supply will decline as oil production falls.

With exploration & production earnings near, first-quarter results are going to be hit by lower price realizations, profitability and cash flow due to the slide in benchmarks and weaker demand related to COVID-19, according to Bloomberg Intelligence.