U.S. Strikes Trade Deal with EU, LNG Stocks Rise

LNG names have risen after the US struck a trade deal with the EU. The Fly reports on the market impact of this development, while TipRanks Premium offers expert analyst insights and advanced data to help investors make informed decisions.

Liquefied natural gas (LNG) stocks have seen significant gains following the announcement of a sweeping trade agreement between the United States and the European Union. The deal, which was finalized on July 28, 2025, has bolstered the prospects for American LNG exporters as they expand to meet growing demand for cleaner-burning fuels.

The framework trade deal, which ended months of uncertainty for industries and consumers on both sides of the Atlantic, calls for strategic purchases covering oil, gas, and nuclear fuel during U.S. President Donald Trump's term in office. The European Union has pledged $750 billion worth of purchases over the next three years, with annual commitments of $250 billion in U.S. LNG [1].

Key players in the LNG sector, such as NextDecade (NEXT), Venture Global (VG), and Cheniere Energy (LNG), saw their shares climb between 3.5% and nearly 7% in premarket trading. These companies are expected to benefit from the increased demand and potential expansion of their LNG export capacities [2].

The agreement also imposes a 15% U.S. import tariff on most EU goods, which is a softer blow than markets had feared. Analysts have noted that this tariff level is better than the previously mooted 30% figure, which could see less of a drag on industrial activity between the two regions [1].

However, the deal could also weigh on gas prices. The increased demand for U.S. energy from the EU could lead to a potential supply glut in the LNG market, potentially pushing gas prices lower [1].

Smaller U.S. gas producers also benefited from the news, with Expand Energy and EQT Corp (NYSE:EQT) rising 1.6% and 3%, respectively, ahead of the market open [3].

The U.S. became the world's largest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine [1].

Oil prices also rose on optimism over the trade deal, with Brent crude futures climbing by 1.1% to $69.20 a barrel and WTI crude rising by 1.1% to $65.90 a barrel [4].

The agreement has provided a positive boost to the energy sector, with the S&P 500 energy sector (.SPNY) up 1% [1]. Investors are closely watching the developments as they could have significant implications for the energy markets and global trade dynamics.

References:
[1] https://www.reuters.com/business/energy/us-lng-producers-climb-eu-agrees-750-billion-energy-purchases-2025-07-28/
[2] https://ih.advfn.com/market-news/article/13565/u-s-lng-stocks-jump-after-eu-commits-to-massive-fuel-purchases-in-landmark-deal
[3] https://www.reuters.com/business/energy/us-lng-producers-soar-eu-agrees-250-billion-annual-purchases-2025-07-28/
[4] https://www.economies.com/commodities/oil-news/oil-prices-boosted-by-optimism-over-us-eu-trade-deal-46966