At the close of the market, shares of Saudi Arabia’s national petroleum and natural gas company were valued at $2.42 trillion.

Saudi Aramco surpassed Apple as the world’s most valuable business on Wednesday, as rising oil prices drove up shares while tech companies fell.

The Saudi Arabian national petroleum and natural gas business, described as the world’s largest oil producer, was valued at $2.42 trillion based on the closing market price of its shares.

Meanwhile, Apple’s stock has dropped in value over the last month and was valued at $2.37 trillion after formal trading finished on Wednesday.

Despite posting better-than-expected profits in the first three months of this year due to robust customer demand, Apple’s stock price has fallen.

Apple, on the other hand, warned that the China Covid-19 lockout and ongoing supply chain issues will reduce June quarter earnings by $4 to $8 billion.

“Supply constraints caused by Covid-related disruptions and industry-wide silicon shortages are impacting our ability to meet customer demand for our products,” Chief Financial Officer Luca Maestri said.

The results were positive following setbacks by some Big Tech rivals as growth from stay-at-home demand slows during the epidemic and corporations face growing operational and personnel expenses.

Saudi Aramco recently claimed a 124 percent increase in net profit for last year, only hours after Yemeni militants assaulted its facilities, inflicting a “temporary” reduction in output.

“Aramco’s net income increased by 124 percent to $110.0 billion in 2021, compared to $49.0 billion in 2020,” the business reported, as the global economy began to recover from the Covid-19 epidemic.

As a result of Russia’s invasion of Ukraine and ensuing sanctions against Moscow, the monarchy, one of the world’s top petroleum producers, has been under pressure to increase output.

Amin Nasser, president and CEO of Aramco, warned that the company’s prospects remained uncertain owing to “geopolitical factors”

“We continue to make progress on increasing our crude oil production capacity, executing our gas expansion programme and increasing our liquids to chemicals capacity,” Nasser added.

On the results for 2021, he recognised that “economic conditions have improved considerably”

Last year’s robust comeback saw demand for oil rise and prices recover from their 2020 lows.Inflation may produce a reduction in consumption, cutting demand for oil, while investor concerns about corporate expenses, interest rate hikes, and supply chain issues may continue to drive down tech shares.

What Led Apple to Fall Behind Saudi Aramco?

• China Covid-19 Lockdown: Due to an increase in Covid-19 cases, major cities in China have been placed under rigorous lockdown. Many of Apple’s goods are made in China. The business previously stated that the Chinese lockout might put additional strain on supply chains and hurt the June quarter earnings by $4-$8 billion.

• Higher Labor Expenses: The demand for work from home (WFH) in most businesses has resulted in an increase in labour and operations costs.

• High Attrition Rates: Since the emergence of Covid-19, attrition rates in businesses have been on the rise. Companies have been forced to adjust their rules in order to retain staff, which has increased operational expenses.

• Oil Price Increase: Saudi Aramco’s earnings have increased 124% year on year. This is mostly due to an increase in oil costs caused by the continuing Russia-Ukraine conflict.

• Inflation: Inflation rates have been growing over the world. In the United States, inflation has reached its highest level in 40 years. As a result, demand for technology stocks has decreased.