Saudi Aramco close to topple Apple in valuation thanks to high oil demandtext_fields
RIYADH: Surging oil demand in the international market has pushed the share value of Saudi Aramco, the biggest oil company to become the second valuable corporation in the world after Apple.
Aramco's share price soared to hit an all-time high of SR38 ($10.13) on the Tadawul exchange in Riyadh on Wednesday. By the recent rise in the stock, the company is currently valued at more than $2 trillion, very close to Apple, which floats at $2.32 trillion.
Markets experts forecast Aramco's taking over Apple in the next year given the surging oil demand in the global market in tandem with the recovering global economy. The US investment bank Goldman Sachs forecasts Aramco touching the share value at SR45 in the next 12 months, enabling it to be placed above Apple.
Weeks before, while announcing the company's financial results, Aramco chief Amin Nasser said that the company hopes to make a further rise in the market in line with more openings of economies.
Speaking at the industry forum this week, Nasser said the company will increase its oil production to 13 million barrels a day along with further investment to boost its energy production.
The main driving force behind Aramco's rise has been the surge in oil prices this year, with the price of global benchmark Brent crude nearly doubling. Careful management by OPEC+, the oil alliance led by Saudi Arabia and Russia, has reduced the oil glut at the height of the pandemic recession and rebalanced global markets.toppling