U.S. energy firms gain as EU commits $750 billion for strategic purchases

Liquefied natural gas developers led gains for U.S. energy companies on Monday after the European Union pledged $750 billion in strategic purchases under a new trade agreement.

The deal includes U.S. oil, gas, and nuclear fuel and is part of a broader trade pact reached during President Donald Trump’s term. The agreement ended months of uncertainty for companies and consumers on both sides of the Atlantic.

NextDecade, Venture Global, and Cheniere Energy rose between 3.5% and nearly 7% in early trading. Uranium miner Energy Fuels also gained nearly 4%.

The U.S. became the world’s top LNG supplier in 2023, passing Australia and Qatar, as demand grew due to supply disruptions and sanctions following Russia’s invasion of Ukraine.

Oil prices rose more than 2%, while the S&P 500 energy index gained 1%.

The agreement also imposes a 15% import tariff on most EU goods, a lower rate than expected.

The deal is expected to increase EU purchases of U.S. energy, which may boost LNG exports but could also raise concerns about future supply levels and their impact on prices.