A nonbinding pledge by the European Union to purchase hundreds of billions in U.S. energy does not make sense given the current market, analysts told news outlets.

The White House on July 28 announced an agreement with the European Union that involves purchasing $750 billion in U.S. energy and investing $600 billion in the U.S. by 2028 as part of an effort to negotiate down President Donald Trump’s tariffs on European countries.

In reality, EU officials cannot force individual member countries to buy from the U.S., Mathieu Utting, an analyst at Rystad Energy, told CNBC. EU member states bought about $80 billion U.S. oil, liquified natural gas (LNG), liquified petroleum gas and coal from the U.S. in 2024, CNBC reported.

Selling more oil to the EU would be difficult because U.S. oil production is flat and likely to decline, Svetlana Tretyakova, an oil analyst at Rystad, told the news outlet. Utting said that U.S. LNG terminals are at full capacity and would have to divert LNG from other customers to supply Europe.