BHP Billiton Limited (ASX: BHP) shares have rocketed to their highest price in more than two months after another strong night for three of its key commodities. The stock surged more than 5% to $32.20 – returning nearly $5 billion to its market value – after dipping as low as $26.50 less than three weeks ago.
The sharp recovery in the oil price is having a drastic effect on the miner's shares. The commodity has risen more than 21% over the last four days, driven by another 6.9% gain overnight, driving confidence that the oil rout may have finally reached a bottom.
Iron ore and copper also showed signs of life overnight. Iron ore, which is BHP Billiton's biggest earnings generator, rose more than 1% to trade at US$63.18 per tonne, according to the Metal Bulletin, while the price of copper jumped the most in one day since July 2013, rising 3.3%.
Investors need to be wary of the risk that commodity prices could once again retreat, which many analysts are suggesting could happen over the course of 2015. But for now, things are certainly looking better for BHP Billiton and the beaten-up commodities sector in general.