Conventional oil and gas production and Steel

Their prices have moved together.

Conventional oil and gas production (energy) and Steel (commodity): 1 relationship.

How they are linked

1. Price link: main input

Cost and price · Strong · Both ways

Wells, casing, platforms and pipelines need large amounts of steel, and drilling booms lift demand for pipe. The US steel index and crude proxy show a yearly link at 0.61, a common driver more than a cost link.

• 0.16 monthly change correlation
• 0.61 12-month change correlation
• 0.45 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.