RIYADH: Amid regional geopolitical tensions and rising oil prices that have refocused global investors on energy, BlackRock and Vanguard raised their Aramco holdings to record highs in the first half of 2026.
Although rising regional tensions and higher oil prices created a supportive environment for energy stocks, ownership data suggests that the increase in the two funds’ investments in Aramco was an extension of a trend that began earlier and was also consistent with their increased exposure to several major global energy companies.
31m shares added
According to Bloomberg data published on Al-Eqtisadiah BlackRock’s exposure to Aramco rose from 168.4 million shares at the end of 2025 to 192.2 million shares by the end of the second quarter, an increase of 14.1 percent, equivalent to 23.8 million shares.
Vanguard also raised its exposure from 263.2 million shares to 270.1 million shares, an increase of 3 percent, equivalent to 6.8 million shares.
As a result, the total shares held by the two institutions reached 462.2 million shares, an increase of 30.6 million shares since the end of last year, while the market value of their holdings was about SR12.3 billion ($3.2 billion) at the current price of SR26.7 per share.
Aramco is not the exception
A comparison of buying movements among major oil companies indicates that Aramco was not the only destination where the two funds increased their investments during the year.
For example, BlackRock and Vanguard’s holdings of both BP and Shell shares rose during the first half of 2026, suggesting that the two funds continued to increase their exposure to the global energy sector, albeit at varying rates across companies.
These movements reflect two main factors: continued flows linked to funds tracking global indices and improving fundamentals among energy companies, supported by rising oil prices.
Why Aramco stands out
Although the increase in exposure extended to global oil companies, Aramco possesses additional factors that distinguish it during periods of geopolitical tension.
During the first quarter, the company raised utilization of its East-West pipeline to its maximum capacity of 7 million barrels per day, while also leveraging its domestic and global storage capacity and alternative export routes, strengthening its ability to maintain supplies even amid navigation disruptions in the Gulf.
The company also confirmed that the events had no material impact on its financial position or results through the end of last March.
On the other hand, the picture is not without pressures, as rising oil prices support revenues but may coincide with lower sales volumes and higher shipping costs, part of which was reflected in the first-quarter results.
Profit recovery gains pace
Aramco’s results show that the first quarter of 2026 represented a turning point after a downward trajectory that began following the peak of the oil cycle in 2022.
Revenue rose 8.8 percent year on year to SR467.2 billion, while net profit jumped 25.5 percent to SR120.1 billion, marking the first annual growth after 12 consecutive quarters of declining profits.
Analyst estimates, according to Bloomberg data, point to continued improvement in the second quarter, with revenue expected to increase 12 percent from a year earlier to SR456.1 billion, and net profit projected to reach SR116.3 billion.
If the second-quarter results come in close to expectations, Aramco will have recorded two consecutive quarters of year-on-year profit growth for the first time since the 2022 oil price upcycle, which could reinforce continued institutional investor interest in the stock.
