Brent crude futures climbed in late trading 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 departure from the previous Labour stance, which had effectively halted new offshore exploration in favor of renewable energy targets.
US President Donald Trump publicly welcomed the development, suggesting it would be celebrated in Aberdeen, a key hub for the UK's offshore energy sector.
While Burnham has not yet confirmed the reports, the market reaction indicates investors are pricing in a higher probability of increased UK supply capacity.
The shift aligns with broader signals from the incoming UK government to prioritize energy security and economic growth over strict environmental restrictions on fossil fuel extraction.
The prospect of new North Sea licenses has implications for major energy operators with existing UK assets, including Shell, BP, and Equinor.