The All Ordinaries Index gained 91 points to close at 6,808 and the ASX 200 added 91 points to 6,792.
The world's biggest miner BHP Billiton surged by almost 3.4 per cent to $47.30 because of higher commodity prices. Rio Tinto was up 5.2 per cent.
The higher oil price has seen oil stocks rise, with Woodside Petroleum up about 2 per cent to $55.21.
In other resources news Perth-based Jubilee mines surged 39 per cent after receiving a $3.1 billion takeover offer from Switzerland-based miner Xstrata.
All the major banks were higher, with the Commonwealth Bank gaining $1.07.
National Australia bank added 44 cents and Macquarie Bank jumped by $2.37.
Telstra was up 1 cent to $4.74 and Qantas slipped 3 cents to $5.98.
About 5:00pm AEDT the Australian was buying 92.45 US cents, 64 euro cents, 44 British pence and 105 Japanese yen.
West Texas crude oil slipped slightly and was trading at $US91.73 a barrel. © 2007 Australian Broadcasting Corporation
