The CEO of Saudi Aramco, Amin Nasser, announced that global oil markets will adapt to disruptions in the Red Sea in the short term, but a prolonged continuation of attacks by the Houthis on ships could lead to a shortage of tankers due to extended journeys and delayed supplies. Nasser told Reuters that he expects the oil market to experience a decrease in supply after consumers have drained inventories by 400 million barrels over the past two years, which has made OPEC’s surplus production capacity the main source of additional supplies to meet growing demand.
On another note, Aramco announced that it has allocated an additional amount of four billion US dollars to Aramco Ventures, its global venture capital arm, effectively doubling the capital allocated to Aramco Ventures. Aramco stated in a press release: "The allocation decision reflects the increasing importance of Aramco's venture capital program in enabling the development of new and innovative technologies, creating opportunities for diversification for the company, and paving the way for collaboration with emerging innovation companies."
It added that "the program aims to help enhance the company’s long-term strategy, which includes a focus on new energy sources, chemicals, the transformation of materials and diversified industrial businesses, and digital technologies." The additional funding—four billion dollars over four years—will raise Aramco Ventures' capital to seven billion dollars. The company also has the Wa'ed Ventures fund, valued at 500 million dollars, which focuses on the startup ecosystem in the Kingdom.
Before the capital increase, Aramco Ventures managed three funds: a digital/industrial fund worth 500 million dollars, the Prosperity7 fund worth one billion dollars, and the Sustainability fund worth 1.5 billion dollars.
