Oil giant Saudi Aramco is now the world's most valuable company, bumping Apple from the top spot

• Saudi Aramco's market value surpassed that of tech giant Apple on Wednesday.
• The oil market has been boosted by fears of a supply crunch due to the war in Ukraine.

Saudi Aramco has overtaken tech titan Apple as the world's most valuable company, after a surge in the oil producer's shares vaulted it above $2.4 trillion.

Apple's market cap fell to $2.37 trillion after its share price tanked 5.2% on Wednesday amid a rout in technology stocks. Meanwhile, state-controlled Aramco's market capitalization stood at 9.1 trillion Saudi Arabian Riyals ($2.43 trillion.)

The value of the two companies could change again due to fluctuations in share prices, but the move on Wednesday underscores broader trends in the global economy.

The energy market is booming. The war in Ukraine has pushed up prices due to sanctions and boycotts against Russia and supply chain challenges. Benchmark US West Texas Intermediate was trading around $105 a barrel on Thursday, while international benchmark Brent crude was around $107 a barrel. Both grades are up 40% year-to-date.

That sent Aramco's net profit more than doubling to $110 billion in 2021. Meanwhile, Apple warned of supply chain constraints in its last earnings release. At the same time, investors are fleeing tech stocks due to fears that rising interests will curb future earnings.

Aramco's share price on the Saudi Stock Exchange is up about 30% this year so far. In contrast, Apple's share price is down about 20% year-to-date.