- 23 Feb 2016
MEI Business Lecture Series: Global Implications of Low Oil Prices
Abstract
The oil price traded around USD 100 for few years, and then in June 2014 it started to drop. Nowadays it trades at less than USD 30. The general expectation is that it might go down more, and it will stay low for a long time.
An excess of supply in the market was the main factor behind the drop in prices. The demand is stagnating because major markets from America to Asia face milder winters, and difficult economic conditions are affecting most of the countries in the world. At the same time the supply is not decreasing since OPEC members are not cutting the production, and Iran is adding about half millions of barrels to the market every day.
Accordingly, countries dependent on hydrocarbons are obliged to cut their expenses, draw down their reserves, and raise more debt. On the other side,countries importing hydrocarbons are enjoying significant discounts on their energy bills.
Within this context, the presentation intends to offer an overview of the oil market, its outlook, and analyze the global consequences of an extended period of low prices.
About the Speakers
Mattia Tomba is a multi-disciplinary investment professional based in Qatar with a track record of investments and acquisitions in different asset classes, sectors, and geographic areas. He has extensive experience in evaluating, negotiating, and structuring direct investments globally across all parts of the capital structure, in public and private markets.In 2008 he joined Qatar’s Sovereign Wealth Fund (Qatari Diar), where he has been managing an equity portfolio, and working on large private equity and real estate transactions worldwide.Previously he was part of the Goldman Sachs Group in the Principal Investment Area (Whitehall Real Estate Funds), where he was involved in portfolio management, and in strategic planning of large European acquisitions. He began his career with the Private Wealth Management team of Merrill Lynch. He is a graduate of Fletcher School, Tufts University (Boston, US), and Bocconi University (Milan, Italy)/Science Po (Paris, France).
