The European embargo on Russian oil and oil products increases uncertainty in the global oil market, said Saudi Aramco CEO Amin Nasser, Reuters reported.

He said the market is being reshaped with discounts offered by Russia.

The Russians, with the right discounts, can place their oil in different markets, Nasser said, adding that crude from other producers, meanwhile, is being redirected - oil destined for Asia is going to Europe, North America and elsewhere.

Last month, the G-7 countries agreed to cap sales of Russian oil at a forced low price by Dec. 5, but faced concerns from major players in the global oil industry.

Speaking at the Future Investment Initiative (FII) forum in Riyadh after announcing a $1.5 billion sustainable development fund to support a stable and inclusive energy transition, Nasser said the current global plan to shift from transitional fossil fuels to new forms of energy was flawed.

If you look at coal, it's 8 billion tons, the highest since 2013. The cost of coal per barrel of oil equivalent is $60 to $80, so we're basically transitioning to coal, he said.

Nasser said the market for blue hydrogen is growing, but so far it's around $200 to $300 a barrel of oil equivalent.

The market that has been identified is mostly in Japan and South Korea, he said.