Saudi Aramco, the world’s largest oil supplier, is closing the market capitalization gap with Apple iPhone maker to become the world’s most valuable company. On Saturday, Aramco stock, which traded at 45.95 Saudi riyals ($ 12.25) a share, reached 9.19 trillion riyals ($ 2.45tn). During the day, it momentarily outperformed Cupertino-based technology behemoth’s market price. Aramco stock has risen over 30% since January 2.
Aramco has benefited from high oil prices of about 60 per cent since last year on higher demand and supply concerns due to the limited capacity of developing countries. In April, both global platforms, Brent and West Texas Intermediate, released their fifth live broadcast live. Due to trade related to the Ukrainian war and production disruptions, Brent’s price – the global base for two-thirds of the world’s oil – is expected to average $ 100 a barrel this year, the highest level since 2013, after a slight more than 40 per cent annually, a report released by the World Bank last month shows.
However, prices are expected to balance to $ 92 next year – well above the five-year average of $ 60 a barrel, a Washington-based lender said. Saudi Aramco shares are becoming a favorite investment for many traders as the outlook for oil prices remains well supported for the next few years. Progress in Aramco is “driven by higher oil prices” and this trend will not last long, said Naeem Aslam, market analyst at Avatrade retailer. “In the short term, this trend will prevail… but we know there is a lot of froth here and once the bubble burst, it will not be very good for Aramco… what the company needs to do now is to make sure to use the current capital and invest in the future, ”Mr Aslam told the Nation. China, the world’s largest oil importer, has imposed travel restrictions in its largest city, Shanghai, and in the capital Beijing due to the Covid-19 outbreak.