Saudi Aramco on Wednesday (Thursday in Manila) dethroned Apple as the world’s most valuable company as surging oil prices drove up shares and technology stocks slumped.

Saudi Arabia’s national petroleum and natural gas company, dubbed the largest oil-producing company in the world, was valued at $2.42 trillion, based on the price of its shares at close of market.

Apple, meanwhile, has seen its share price drop over the past month and was valued at $2.37 trillion when official trading ended on Wednesday.

The sinking share price came despite Apple reporting betterthan-expected profits in the first three months of 2022 on the back of strong consumer demand.

But, Apple warned that China’s Covid-19 lockdowns and ongoing supply chain woes would dent June quarter results by $4 billion to $8 billion.

“Supply constraints caused by Covid-related disruptions and industrywide silicon shortages are impacting our ability to meet customer demand for our products,” Apple Chief Financial Officer Luca Maestri said on a conference call with analysts.

The results looked good following stumbles by some Big Tech peers as growth from the stay-athome demand amid the pandemic slows and companies confront rising operating and labor costs.

Saudi Aramco recently reported a 124-percent net profit surge for last year, hours after Yemeni rebels attacked its facilities that caused a “temporary” drop in production.

As the world economy started to rebound from the Covid-19 pandemic, “Aramco’s net income increased by 124 percent to $110.0 billion in 2021, compared to $49.0 billion in 2020,” the oil giant said.

The Middle Eastern kingdom, one of the world’s top crude exporters, has been under pressure to raise output as Russia’s invasion of Ukraine and subsequent sanctions against Moscow have roiled global energy markets.

Aramco President and Chief Executive Officer Amin Nasser cautioned that the company’s outlook remained uncertain due in part to “geopolitical factors.”

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

On the 2021 results, he acknowledged that “economic conditions have improved considerably.”

A strong rebound last year saw demand for oil increase and prices recover from their 2020 lows.

Inflation could cause a drop in consumption, reducing demand for oil, while tech shares could continue to be dragged down by investor concerns over company costs, interest rate rises and supply chain woes.