Cominvest's Breil Comments on Oil, Uranium and Steel Prices

Klaus Breil, a fund manager at Cominvest Asset Management in Frankfurt, comments on falling oil prices, rising uranium prices and cuts in recommendations on steel stocks. He spoke in German in a television interview today.

On falling oil prices:

``With oil, the so-called risk premium has gone out of the price, after crises such as the one in Lebanon calmed down and the weather in the Gulf of Mexico wasn't as bad as feared.''

On rising uranium prices:

``The number of projects for new nuclear plants worldwide in the planning phase as well as the building phase now number 200, mostly in China and India, so it's clear that demand for uranium will rise strongly and we'll need rising prices to tap uranium extraction.''

On cuts to recommendations on steel stocks:

``The argument is that overcapacity from China is pressuring the market. It's true that exports from China have risen. On the other hand, we know and hear from the industry that the quality of these exports in question is very limited, so there's not as much potential demand as for European or American steel producers. So it's a limited phenomenon that shouldn't be around too long, and the downgrades to steel companies are probably temporary.''

To contact the reporter on this story: Susanna Ray in Frankfurt at sray7@bloomberg.net.

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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