Is there a true parallel between oil & gas and iron & steel. I would have thought the inverse with the occasional crossover as they transition from and up to down markets and vice versa.
The logic - oil & gas are primarily energy sources whereas iron & steel are manufactured products for construction and manufacture and the latter needs a low cost / high demand driver for the former to generate demand for itself. Iron & steel also benefit from a rising demand and or price in oil & gas due to the infrastructure required to be produced, maintained or continually replaced.
In Australia we have substantial reserves of gas and only limited oil, most of which is light crude.
AGL, STO, BPT, WSP, ARI, LNG, APP etc. are all out there amongst the myriad of others and at current prices they are all exposed to possible acquisitions by long term thinkers with deep pockets. Some of the big international PE and IF funds are trawling the markets everywhere at the moment and Europe isn't exactly setting them on fire with its geo-political instability.
