BRAVADO Talks about OPEC+ Impact on Energy Industry

BRAVADO analysts have described the effects on the energy insurance market following the OPEC+ meeting in early October, where it decided to restrict oil output by 2 million barrels per day (BPD). BRAVADO observes that the decision was reached due to a variety of considerations, but one thing is clear: OPEC+ wants to keep oil prices around $90 per barrel and is unwilling to let prices go farther than that, regardless of economic headwinds.

"It's crucial to remember that we aren't likely to see 2 million barrels coming offline; the real number is about 890,000 barrels," BRAVADO says. This gap exists because OPEC+ countries commit to a particular level of output, and many of those countries have not been able to reach their assigned allocation of that output since the pandemic.

According to BRAVADO, the energy insurance industry continues to deliver competitive alternatives for insureds. It observes that carrier demand changed in late 2021 and early 2022, and that the space has mostly adjusted and found some constancy.

While BRAVADO awaits the full impact of OPEC+'s decision on worldwide energy business, and by extension, the energy insurance marketplace, it says that it is focused on providing competitive solutions to assist agents and insureds in navigating the uncertainties.