Conning ConnText Podcast: While Energy Remains Volatile Market, Industry Cost Improvements and Market Dynamics Feed Positive Outlook for Prices
January 23, 2025
Insurers Encouraged to Focus on Quality in Energy Investments
HARTFORD, CT – January 23, 2025 — Leading global investment management firm Conning has posted its latest Conning ConnText quarterly podcast, which offers an outlook for energy markets amid a new presidential administration that has said it will pursue broad array of energy resources.
Rich Sega, Conning’s Global Chief Investment Strategist and host of the podcast, discussed a number of energy market topics with Marcus McGregor, Managing Director and Head of Commodities (Energy and Basics) Research Team at Conning.
Sega noted that President Trump’s Energy nominee, Chris Wright, CEO of Liberty Energy, a hydraulic fracturing company, “is the first such candidate to head that department with extensive industry experience. He has been open to a broad range of energy solutions beyond his specific company’s focus, including renewables and nuclear, which is very good news for an energy-hungry world.”
McGregor said that Conning’s expects West Texas Intermediate (WTI) crude to range between $60 and $90 per barrel in 2025, and natural gas to cost between $2 and $4 per BTU. While trade policy with other countries and/or sanctions can affect this pricing, “given that we have a well-supplied market, we see limited upside risk and more downside risk.”
Sega and McGregor also discuss the dynamics of international energy demand, the impact of fracking and drilling, the poor conditions of the U.S. coal market, and the Biden administration’s recent ban on oil drilling in U.S coastal waters.
McGregor also suggested that insurance companies considering energy market investments for their portfolios focus on quality - “credits mid-BBB or higher” – and integrated and midstream issuers as well as those with some exposure to the natural gas market.
To access the podcast and subscribe to the Conning ConnText podcast, click here.
ABOUT CONNING
Conning is a leading investment management firm and with affiliates has more than $172 billion in global assets under management as of September 30, 2024.* With a long history of serving insurance companies and other institutional investors, Conning supports clients with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. Conning is part of the Generali Investments platform, which has approximately $740 billion in assets under management.**
* As of September 30, 2024, includes Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”), and Conning subsidiaries Global Evolution Asset Management A/S, Octagon Credit Investors, LLC, and Pearlmark Real Estate, LLC.
** Generali Investments Holding S.p.A., data as at end of Q4 2023 gross of double counting, with addition of April 2024 acquired assets. Generali Investments is part of the Generali Group, which was established in 1831 in Trieste as Assicurazioni Austro-Italiche. Generali Asset Management S.p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Infranity SAS, Sosteneo S.p.A. Società di gestione del risparmio, Sycomore Asset Management, Aperture Investors LLC (including Aperture Investors UK Ltd), Lumyna Investments Limited, Plenisfer Investments S.p.A. Società di gestione del risparmio, Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”) and its subsidiaries (Global Evolution Asset Management A/S - including Global Evolution USA, LLC and Global Evolution Fund Management Singapore Pte. Ltd- Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC and PREP Investment Advisers LLC) are part of Generali Investments, as well as Generali Investments CEE. Please note that the countries refers to the countries where the different funds of the asset management companies that are part of Generali Investments are registered for distribution. Please note that not all funds are registered in all the countries and not all the asset management companies are licensed to operate in such countries. Generali Investments Holding S.p.A. is the holding company holding, directly or indirectly, majority shareholding in the asset management companies listed above.
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Media Contacts
Marty McDonough
Conning
+1 860-299-2391
marty.mcdonough@conning.com