Elevated energy prices as a result of growing demand and supply shortages in the post-pandemic global economy boosted the value of Saudi Aramco to become the world’s most valuable company, according to reports.
Saudi Aramco unseated Apple as the world’s most valuable company after shares of the tech giant fell roughly 13% in the past month.
Saudi Aramco’s passing of Apple “underscores investors’ appetite for oil and gas as the countries around the globe battle rampant inflation and fear of energy shortages,” Bloomberg notes. “Buying the future through tech stocks is taking a back seat to the concerns of the present, as fossil fuels reassert their critical importance in all aspects of daily life. Elevated inflation is underpinned by rising energy costs that ripple through all aspects of the economy, from food to flying.”
Oil prices have soared to record highs in part because of concerns about disruptions of supply from Russia since its invasion of Ukraine.
“The world needs to wake up to an existing reality,” Saudi energy minister Prince Abdulaziz bin Salman said this week.
“The world is running out of energy capacity at all levels — be it upstream, midstream or downstream. We are running out of capacity in manufacturing… [and] in supply chains,” he said.
“Look at the differentials for diesel, for gasoline,” Prince Abdulaziz said. “Look at the margins now — $40bl, $50/bl, $60/bl. I am a dinosaur, but I have never seen such things, ever,” the Prince added.
