Aramco's Nasser says 'negative' market outlook triggered by Ukraine war, high inflation, interest rates

Amin Nasser, CEO of Saudi Aramco

Saudi Aramco President and CEO Amin Nasser said that the increase in oil demand following COVID-19 pandemic, and its impact on supply chains, along with Ukraine crisis, and other factors such as higher interest and inflation rates, created a negative outlook for the market.

As for putting a price cap on Russian oil as of December, Nasser said that this matter is still unclear.

During a panel discussion held as part of the Future Investment Initiative (FII) Conference, Nasser explained that the oil market is adjusting and changing. "We are witnessing a redistribution of oil, as Russia is able to provide oil to Asia and other countries instead of Europe," he noted, adding that the redistribution in the market is logistically positive.

Saudi Aramco launched its strategy for sustainability and renewable energy, which targets reducing carbon emissions by 15% by 2025 compared to 2018. It will also slash 55 million tons by 2025 through investments and raising the efficiency of solutions based on carbon reduction, said the CEO. 

The oil giant is working on a circular carbon economy and many technologies that contribute to reducing carbon emissions, as well as on renewable energy projects and investment in energy with less carbon emissions such as hydrogen, Nasser added.