Brent crude futures climbed in late trading on Wednesday as reports emerged that incoming UK Prime Minister Andy Burnham is preparing to approve new oil and gas drilling licenses in the North Sea.
The potential policy reversal marks a significant shift in the Labour Party’s energy stance, prioritizing domestic energy security and economic output over previous environmental restrictions.
During the conversation, Burnham reportedly told Trump that the UK "can't ignore" the resources available in the North Sea, leaving the door open for future drilling projects.
The market move followed confirmation that Burnham held a phone call with US President Donald Trump on his first day in office.
During the conversation, Burnham reportedly told Trump that the UK "can't ignore" the resources available in the North Sea, leaving the door open for future drilling projects.
This diplomatic signal suggests a coordinated approach to energy policy between London and Washington, potentially easing concerns about supply constraints in the region.
The development comes as consultations on controversial oil and gas projects are due to end next month.