Here's why Australia's oil stocks are providing plenty of energy today

Senex Energy Ltd (ASX:SXY), Santos Ltd (ASX:STO) and BHP Billiton Limited (ASX:BHP) are all providing plenty of energy today.

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Australia's energy sector is providing plenty of excitement today after a strong rise in oil prices overnight.

Although there are still huge concerns regarding the United States' growing pile of crude inventory, oil prices managed to rise strongly thanks to comments made by the US Federal Reserve. Following its two-day policy-making meeting, the Fed comforted the markets by suggesting it would not increase interest rates as quickly as what the market had been expecting. As a result, the US dollar fell heavily against other major currencies.

Given that oil is traded in US dollars, a weaker currency makes it more affordable to foreign buyers which could help ease the nation's growing inventory problem. The price of West Texas Intermediate (WTI) crude surged 2.8% to US$44.66 a barrel while Brent crude rose roughly 5% to US$55.91 a barrel, according to The Australian Financial Review.

Here's how Australia's energy producers are performing as a result:

  • Senex Energy Ltd (ASX: SXY) is up 5.1%
  • Santos Ltd (ASX: STO) up 1.8%
  • Woodside Petroleum Limited (ASX: WPL) up 1.4%
  • BHP Billiton Limited (ASX: BHP) up 1.6%
  • Origin Energy Ltd (ASX: ORG) up 2.4%
  • Sundance Energy Australia Ltd (ASX: SEA) up 3.1%

Today's gains will certainly come as a relief for energy investors whose shares have come under significant selling pressure in recent weeks. Indeed, there are still plenty of risks facing the sector and investors may want to look elsewhere for safer returns.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest. The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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