Saudi Aramco is on the verge of claiming the title of the world's most valuable company, potentially surpassing technology giant Apple. Shares of the state oil company have surged due to rising energy prices, boosting its market value to $2 trillion, just slightly below Apple's valuation of $2.3 trillion. The stock prices of both companies reflect the changes in the global economy this year, with Apple's shares struggling as consumers reduce spending on home entertainment that thrived during the pandemic while beginning to return to normal life. The revival of transportation activities following economic reopenings has led to a spike in oil prices, directly boosting Aramco's profits.
There is reason to believe that Aramco's shares may continue to rise, as analysts at Bank of America suggested that the global energy crisis could push oil prices above $100 per barrel for the first time since 2014, according to Bloomberg. Conversely, Apple is facing pressure as investors exercise caution regarding highly valued tech stocks amidst rising bond yields.
