New York, USA – July 29, 2025 –
Shares in major oil and gas companies advanced today as crude oil prices rose, driven by a wave of optimism surrounding the European Union’s ambitious plans for significant investments in its energy sector.
West Texas Intermediate (WTI) futures, the US crude oil benchmark, surged by 2.9% to settle at $67.05 per barrel, rebounding from a sharp decline observed on Friday. Similarly, Brent crude, the international benchmark, saw gains, trading just above $70.00 per barrel. This upward movement in crude prices provided a tailwind for energy sector stocks across the board.
Leading the charge among exploration and production companies, Diamondback Energy (FANG) surged more than 4%, while Devon Energy (DVN) gained 3.5%. Even the energy majors, Exxon Mobil (XOM) and Chevron (CVX), each added approximately 1% to their share prices, reflecting broad-based positive sentiment in the sector.
The rally in oil prices and energy stocks comes on the heels of major announcements regarding the European Union’s future energy strategy. Over the weekend, US President Donald Trump and European Commission President Ursula von der Leyen unveiled a “Landmark Trade Deal” that includes a substantial commitment from the EU to purchase $750 billion worth of energy from the United States during the remainder of Trump’s term in office. This massive investment aims to significantly reduce Europe’s reliance on Russian energy supplies, with plans to purchase liquefied natural gas (LNG), oil, and nuclear fuels from the U.S. The EU has also pledged an additional $600 billion beyond its existing energy commitments.
This strategic shift by the EU, alongside its ongoing efforts to boost renewable energy and improve energy efficiency, is being interpreted by the market as a strong signal of future demand and stability in the global energy landscape. While the EU’s long-term vision involves a transition to cleaner energy sources, the immediate and substantial investment in traditional fossil fuels and nuclear power from diversified suppliers like the US is seen as highly supportive of current crude prices.
Furthermore, the European Commission officially launched its EU Energy & Raw Materials Platform earlier this month (July 7), designed to support European industry in sourcing essential energy products and raw materials. This initiative, part of a broader push to enhance energy security and diversification, includes mechanisms for hydrogen, raw materials, natural gas, and biomethane, signaling sustained investment in the energy sector as a whole.
While some forecasts from earlier in the year predicted lower oil prices for 2025 and 2026 due to anticipated ample supply, the significant geopolitical risk premium from the escalating conflict over Iran’s nuclear program in mid-June and now the substantial EU commitment have contributed to the recent upward pressure on prices. Investors are clearly factoring in this increased demand and strategic procurement, pushing energy sector stocks higher on today’s trading.
