BHP Billiton Limited (ASX: BHP) is setting the local sharemarket alight today with the miner's shares soaring $1.27 per share, or 5.3%, to $25.33.
BHP is one of many miners trading in the black today following an explosion in the oil price overnight. The resource soared almost 10%, recording its biggest one-day rally in years as equity markets around the world continued to recover from Monday's market crash. Reports of a decline in crude oil supplies provided the extra boost.
Oil is one of BHP Billiton's most important commodities, accounting for a large portion of the group's overall earnings. Its recent dive contributed to the miner's recent 51.6% decline in annual net profit, so a rise in price is certainly encouraging for investors.
Other prominent energy producers such as Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) also rose 2.5% and 6.4%, while Origin Energy Ltd (ASX: ORG) and Liquefied Natural Gas Ltd (ASX: LNG) were up 4.4% and 7%, respectively.
The nation's iron ore miners were also on fire with Fortescue Metals Group Limited (ASX: FMG) up 9.8% and Rio Tinto Limited (ASX: RIO) up 3.9%. Although iron ore only rose 0.5% overnight, it did end a nine-day losing streak brought on by the severe volatility in the global economy.
Again, this will also be encouraging for BHP shareholders and other investors in the sector, but with further falls expected, they shouldn't get too comfortable. Luckily, thanks to the market's recent crash, ASX stocks haven't looked this appealing in years with investors being presented with plenty of superior alternatives.
