Aramco CEO: Oil demand is strong and the market is watching Russia sanctions

The CEO of Saudi Arabia's state-owned oil giant Aramco stated on Tuesday that crude oil demand had been strong before sanctions were imposed against major Russian oil companies Rosneft, and Lukoil. He also said the Chinese demand was healthy.

When asked about the oil price, Amin Nasser replied on a panel during the Future Investment Initiative Conference: "Right Now we have to watch and see what happens with the sanctions."

"But we know for sure that demand was strong before sanctions were imposed against Rosneft, and Lukoil."

Donald Trump, the U.S. president, imposed sanctions against two Russian oil companies on October 22 in relation to Ukraine.

The UK had targeted Lukoil, Rosneft and 44 shadow fleet tanks a week before in what they described as a renewed effort to tighten sanctions on energy and stifle Kremlin revenues.

Lukoil, headquartered in Moscow, accounts for about 2% of the global oil production.

This week, the FII will convene in Riyadh, where it will include attendees such as Presidents of Colombia and Syria, including Gustavo Petro, Larry Fink from BlackRock, Jamie Dimon at JPMorgan, and Jane Fraser from Citi. The event also includes energy and tech heavyweights like Aramco's Amin Nasseer and Intel's Lip Bu Tan. Yousef SABA, Maha El Dahan and Kirby Donovan are responsible for reporting; Maha El Dhan is the writer; Kirby Donovan is in charge of editing.

(source: Reuters)