Saudi Aramco has surpassed Apple as the most valuable firm in the world

Saudi Aramco eclipsed Apple as the world’s most valuable business on Wednesday, thanks to rising oil prices that boosted its stock. The Saudi Arabian national petroleum and natural gas business was valued at $2.42 trillion, while Apple was valued at $2.37 trillion, despite a drop in its share price over the preceding month. The figures are based on share prices at the close of the market on Wednesday.

Despite falling stock prices, Apple’s profits in the first three months of this year were higher than predicted. The continued supply issue and the Chinese COVID-19 lockout, however, are expected to reduce June quarter results by $4-8 billion.

During a conference call, the business said it’s still having trouble getting enough chips to satisfy demand and is dealing with COVID-related factory shutdowns in China that build iPhones and other goods. Apple CEO Tim Cook told analysts, “It will influence most of the product categories.”

Saudi Aramco, on the other hand, recorded a 124 percent increase in net profit over the previous year, from $49.0 billion in 2020 to $110.0 billion in 2021. Yemeni rebels assaulted its facilities hours later, causing a brief halt in production.

Saudi Arabia has been under pressure to increase output in the aftermath of Russia’s invasion of Ukraine and the sanctions imposed on Moscow, which have caused global oil markets to become unpredictable. Due to geopolitical pressures, Saudi Aramco’s outlook remains uncertain, according to its president.

As oil prices rise, however, inflation will rise even faster, compelling the Federal Reserve to boost interest rates. Investors will depreciate the value of future revenue flows from IT businesses due to company costs and supply chain issues when interest rates rise, causing their prices to fall. While inflation will raise the price of oil, it may also trigger a decline in consumption, lowering demand for the commodity.