EFTA02678740

From: Ens, Amanda <[email protected]> Sent: Wednesday, July 10, 2013 7:55 PM To: Jeffrey Epstein ([email protected]) Cc: Barrett, Paul 5; Barrett Pod Subject: WTI / Brent Spread narrowing despite Middle East tensions Jeffrey, c=p> Some interesting color fr=m our traders.... The WTI / Brent spread has been tightening despite th= tensions in Egypt / Middle East. The spread now is all about the WTI=supply situation delivery point in Cushing - Oklahoma has 50 million bbls, but 85% of that is not light sweet=oil and not deliverable into the WTI Nymex contract. The market is st=rting to realize this now. The measures taken place=to deal with the WTI oversupply over the last few years have gone too far.&=bsp; Seaway pipeline is taking light sweet oil out of Cushing down to the G=If Coast and pipelines have come online in the last few months which are taking WTI produced in Texas directly to t=e US Gulf Coast instead of to Cushing. So, we are looking at r=nning out of WTI completely in Cushing over the next 6 weeks. The Egypt situation will only start mattering if viol=nce affects the control of the Suez Canal, which at this point it does not=appear likely to happen. The cost of transporting from Cushing to the=Gulf is approx $5/bbl so longer term the expectation is that WTI would settle at least $5 under Brent. Amanda Ens I Vice President I Global Investment Opportu=ities I J.P.Morgan I NMLS ID: 853443 320 Park Ave, 14th Floo=, New York, NY 10022 [email protected] <mailto:%7CAmanda. [email protected]> DISC=AIMERS: THIS EMAIL IS FROM THE JPM TRADING DESK AND IS NOT A PRODUCT OF JPM=RESEARCH. OPINIONS MAY DIFFER IN THE SHORT TERM. THIS CONTENT IS NOT TO BE=FORWARDED NOR IS IT AVAILABLE TO THE PRESS. FORWARDING OR MISUSING THIS EMAIL/CONTENT MAY RESULT IN LOSS OF=ACCESS OR LEGAL ACTION. NOT AN OFFICIAL CONFIRMATION EFTA_R1_01979024 EFTA02678740 For informational purposes only. This report d=es not represent an official account of the holdings, balances, or transact=ons made in your account and is being provided at your request. Please refer to your monthly account statement for t=e official record of all of your account activities. For question, pl=ase call your 1.P. Morgan representative. This e=ail is confidential and subject to important disclaimers and conditions inc=uding on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, conf=dentiality, legal privilege, and legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclosu=es/email <http://www.=pmorgan.com/pages/disclosures/email> . IRS Circular 230 Disclosure: JPMorgan Chase &=Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained her=in (including any attachments) is not intended or written to be used, and c=nnot be used, in connection with the promotion, marketing or recommendation=by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose o= avoiding U.S. tax-related penalties. This email is confidential and subject to important disclaimers and conditio=s including on offers for the purchase or sale of securities, accuracy and=completeness of information, viruses, confidentiality, legal privilege, and=legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclo=ures/email. 2 EFTA_R1_01979025 EFTA02678741