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Apple is no longer the world’s most valuable company.

  • Saudi Aramco, the world's most valuable company, is now the most valuable company in the world.
  • On Wednesday, it overtook Apple.

During the recent instability in financial markets, oil is proving to be more powerful than technology.

Saudi Aramco, the state-owned oil firm, has dethroned Apple AAPL +3.19 percent, the creator of iPhones and Mac computers, as the most valuable company on the planet.

With a market capitalization of $2.4 trillion on Wednesday, the oil giant surpassed Apple, which slid more than 5% to just below that threshold.

Apple (ticker: AAPL) has lost over 20% of its value this year, whereas Aramco has gained 28%. The last time Saudi Aramco (2222.SA) outperformed Apple was in 2020.

Since Russia invaded Ukraine in February, the corporation with the monopoly on extracting crude from Saudi Arabia, which has the world's second-largest reserves, has benefited from the rise in oil prices. Exxon Mobil XOM +2.97 percent (XOM), Chevron CVX +1.92 percent (CVX), and Occidental Petroleum (OXY).

Meanwhile, Apple has lost ground as the Federal Reserve reacts to rising prices. Technology equities have been pummelling by rising interest rates, with the Nasdaq CompositeCOMP +3.82 percent down 25% so far in 2022.

Brent crude, the worldwide benchmark, fell 1.9 percent to $105.49 on Thursday, owing to concerns that a slowing economy could reduce gasoline consumption. However, it is up more than 50% from a year ago. The US benchmark, West Texas Intermediate, was down 2% at $103.45.