Here's why BHP Billiton Limited rallied 2.6% on Friday

Despite a crumbling oil price, BHP Billiton Limited (ASX:BHP) has managed to rally higher

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BHP Billiton Limited (ASX: BHP) has led the Australian share market higher today, surging 2.6% to $29.11 compared to the S&P/ASX 200's (Index: ^AXJO) (ASX: XJO) 1.3% rally.

While the stock's rise has been partially supported by the 0.6% appreciation in the iron ore price overnight to US$71.36 a tonne, according to the Metal Bulletin Ltd, it may also have risen following optimistic comments regarding the oil rut.

As reported by The Australian Financial Review, commodity hedge fund manager Andrew J. Hall believes "some recovery" is likely in the second half of 2015 and that an "absolute price floor" was possible in the US$40-a-barrel range. Although Brent crude fell 2% overnight to US$50.11 per barrel, the news may have at least calmed investors' nerves.

Indeed, the gains have been widespread throughout the energy sector today with Woodside Petroleum Limited (ASX: WPL) also lifting 2.9% while Santos Ltd (ASX: STO) and Senex Energy Ltd (ASX: SXY) rose roughly 4% each. Meanwhile, Sundance Energy Australia Ltd (ASX: SEA) has risen 5.7%, making it one of the ASX 200's strongest performers for the day.

Although BHP's shares might seem tempting at their current price, investors need to consider that commodity prices could still remain volatile, which could result in further share price pain. While it's certainly worth adding the miner to your watchlist, investors may be wise to hold off from buying a stake just yet.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

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