ASX 200 energy shares lead the market as US trade deals fuel optimism

ASX energy shares lifted 3.94% as more US trade deals led to improved market sentiment.

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Energy shares were the best performers among the 11 ASX 200 market sectors last week with a 3.94% gain.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) fell 1.03% to 8,666.9 points on Friday.

Trading Economics analysts said optimism was growing in the market as the US negotiated more trade deals.

The analysts said:

Reports suggest the US and EU are nearing an agreement that would impose a 15% tariff on most EU goods, following a similar pact with Japan. Potential trade agreements with India, Mexico, and Brazil are also on the horizon.

Expectations that easing trade tensions could bolster global economic growth helped ease concerns over future oil demand.

US President Donald Trump described his deal with Japan as "perhaps the largest deal ever made".

In exchange for cutting the reciprocal tariff on Japan from 24% to 15%, Japan has pledged to invest $550 billion into the US.

Six of the 11 market sectors finished in the green last week.

Let's review.

Oil industry worker climbing up metal construction and smiling.

Image source: Getty Images

ASX 200 energy shares on top last week

The energy sector's largest company, oil and gas giant Woodside Energy Group Ltd (ASX: WDS), closed at $26.20 per share on Friday.

That represented a 7.38% gain for the week and a nine-month high. This followed a positive 2Q FY25 update from the sector heavyweight.

Woodside was the only strong performer among the major ASX 200 oil shares last week.

Santos Ltd (ASX: STO) shares fell 0.26% to $7.78. The Karoon Energy Ltd (ASX: KAR) share price fell 1.55% to $1.90.

Beach Energy Ltd (ASX: BPT) shares dipped 0.36% to $1.37. Viva Energy Group Ltd (ASX: VEA) shares descended 3.04% to $2.23 apiece.

Ampol Ltd (ASX: ALD) shares lifted 0.88% to $27.52.

Coal stocks were a bright spot among ASX 200 energy shares as Newcastle coal futures rose close to their highest level since February.

Yancoal Australia Ltd (ASX: YAL) shares surged 11.3% to $6.50. The Whitehaven Coal Ltd (ASX: WHC) share price rose 12.64% to $6.95.

New Hope Corporation Ltd (ASX: NHC) rose 6.4% to $4.32 on Friday.

Trading Economics analysts said buying activity from Chinese plants momentarily offset the increasingly oversupplied coal market.

ASX 200 uranium stocks fell last week.

Boss Energy Ltd (ASX: BOE) shares tumbled 9.81% to $3.40 after news that CEO, Duncan Craib, will step down on 30 September.

He will stay on at the company as a non-executive director from 1 January.

Paladin Energy Ltd (ASX: PDN) shares closed at $7.23, down 7.54%, after the market was disappointed by the company's quarterly activities report and FY26 production guidance.

The Deep Yellow Ltd (ASX: DYL) share price lost 1.37% to close at $1.80 on Friday.

Deep Yellow also released a quarterly activities report last week

What happened to energy commodity prices last week?

Commodity prices relevant to the major ASX 200 energy shares rose slightly over the week.

On Friday, the Brent crude oil price was trading at about US$69.68 per barrel, up 0.61% over the week.

The WTI oil price was trading at about US$69.70 per barrel, up 0.69% over the week.

The uranium price was US$72.30 per pound, up 0.84% for the week.

The coal price was US$113.10 per tonne on Friday, up 2.35% for the week.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Energy (ASX: XEJ)3.94%
Healthcare (ASX: XHJ)2.09%
Materials (ASX: XMJ)2.04%
A-REIT (ASX: XPJ)1.12%
Utilities (ASX: XUJ)0.51%
Information Technology (ASX: XIJ)0.32%
Industrials (ASX: XNJ)(1.28%)
Consumer Staples (ASX: XSJ)(1.48%)
Communication (ASX: XTJ)(1.56%)
Consumer Discretionary (ASX: XDJ)(2.01%)
Financials (ASX: XFJ)(3.87%)

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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