SYDNEY, AAP – Shares on the ASX have closed at their highest level since mid-September after energy stocks soared on higher oil prices.

Energy shares on Monday gained more than two per cent after oil supply remained tight despite solid demand from recovering economies.

Beach gained more than five per cent. There were rises of more than three per cent for Oil Search, Santos and Woodside.

The big banks were mixed while the miners all improved by about one per cent.

The benchmark S&P/ASX200 index closed higher by 25.5 points, or 0.34 per cent, to 7441.

The All Ordinaries closed up 27.5 points, or 0.36 per cent, to 7754.3.

The Australian dollar was buying 74.89 US cents at 1620 AEDT, higher from 74.76 US cents at Friday’s close.