<table><tr><th>From:</th><th>Daniel Sabba c &gt; </th></tr><tr><td>Sent:</td><td>Friday, January 9, 2015 1:53 AM</td></tr><tr><td>To:</td><td>Jeffrey Epstein</td></tr><tr><td>Subject:</td><td>Fw: EOD Commodities Note - 8 Jan [C]</td></tr></table>

Classification: Confidential

Vol in crude contin=es to collapse

From: Prateek Jain

Sent: 01/08/2015 09:15 PM GMT

Sub=ect: EOD Commodities Note - 8 Jan

Oil

A relatively quiet day in Crude today. We hovered ar=und unchanged for most of the day before selling off in the afternoon and resting 50$ BRE again. However, we failed to break it and rallied towards u=changed for the close, perhaps off the back of some index buying. Newswise, Feb Azeri BTC loadings will be up=a whopping 11% m/o/m to 821kbd. Interestingly, there is apparently some fl=ating storage interest happening as well, as some major phys trading firms=have booked long term tankers for this as long term charter rates are cheaper and thus make the economics of=storage look good. The window was again weak with ekofisk and brent offerer down a bit. In other news, RTRS cites GCC "sources" saying th=t there is no chance of OPEC cut even though oil has dipped to 505...Stateside, we learned yesterday that the Seaway Tw=n is moving 100% heavy crude. Furthermore, USGC diffs weakened again, with=LLS now trading 1$ above WTI. In the morning WTI spreads were quite bid, b=t that abated towards the end of the day. The arb did however stay bid throughout the day, as the fad that=LLS/WTI is tight at 1$ means that there is more room BRE to discount vs LL= so as to place those Jan and Feb overhang cargoes in the US. In politics =and, the Senate committee voted 13-9 to have Keystone "bypass" presidential approval. So if th= Senate passes this bill (which it should as it has 60 co sponsors), Obama=may have to veto it. It is not clear that the Senate has 67 votes needed t= overturn the veto, so this should be interesting to follow...In products land, distillate bounced back a bit after yest=rday's post stats ugly showing, perhaps off the realization that the=stats didn't add up along with the extremely cold weather giving NG = (rare) bid as well...

=/p>

Oil Vols

Another day of carnage in oil vols today. Early morn=ng NY vols were down 0.4-0.5 through the curve, but a one way selling strerk started just before the open and all the bids out there started getting =it. As an example Dec5 atm straddles started the day 1465/1505, were 1405/1450 at 9am, and were 1350/1390 laterrin the day. Within 2 hours of open, vols were down about 3 vols across the=curve..and stayed there for most of the day till about 1:30pm when futures=took a quick leg lower.. prompt vols traded 1.5% higher than close at that time and Jun5 was up 2% from th= lows. However, with a quick rally back vols started fading again and ende= 1.5.2.5 lower.

Wings got smashed again and put skew collapsed quick=y. 8000 lots of $40puts in WTI Mar15 were sold on the screen, which is qui=e an impressive volume outside floor trading..

=/p>

&=bsp; &nbs=; =nbsp; WTI (/change) &=bsp; &nb=p; BRE (ichange)=/span> 615 &nbs=; &=bsp; 50.40% -1.60% &=bsp; 44.00% -2.60% H15 &nbs=; =nbsp; &nb=p; 45.50% -2.40% = 43.70% -1.10% M15 &nbs=; =nbsp; 41.40% -2.10% &nbs=; &=bsp; 38.20% -2.60% Z15 &=bsp; 35.15% -1.60% &nbs=; 33.10% -2.15% Z16 &nbs=; &=bsp; 28.60% -2.00% =nbsp; 28.50% -1.80%

Index

No rhyme or reason to flat price action today.<=o:p>

Energy up, precious down, ags down, sorts up, base m=xed.

Contributing to the choppy action was day one the SP=S and BCOM index rebalance and it was quite choppy during the closing bell=

Estimated rebalance numbers are next to today'= performance grid. Only 4 more days to go Sean Kemery

</=:p>

Base Metals</=:p>

<table><tr><th>3m Ivls</th><th>&amp;n=sp;</th><th></th><th>dod change &amp;nb=p;</th><th>support</th><th>&amp;nb=p; resistance</th></tr><tr><td>Al $1832</td><td>&amp;=bsp;</td><td></td><td>+$42 &amp;nbs=;</td><td>= $1800</td><td>= $1900</td></tr><tr><td>Cu $6101</td><td>&amp;=bsp;</td><td></td><td>-$11 &amp;n=sp;</td><td>&amp;nbs=; $6000</td><td>&amp;nbs=; $6200</td></tr><tr><td>Zn $2160</td><td>&amp;=bsp;</td><td></td><td>+$27 =</td><td>&amp;=bsp; $2125</td><td>&amp;=bsp; $2200</td></tr><tr><td>Ni $15,550</td><td>=</td><td>+$0</td><td>&amp;nb=p;</td><td>&amp;=bsp; $15,000</td><td>&amp;=bsp; $15,650</td></tr><tr><td>Pb $1851</td><td>&amp;=bsp;</td><td></td><td>+$1 =</td><td>&amp;n=sp; $1830</td><td>&amp;nbs=; $1900</td></tr></table>

The base complex was up in the morning, with most me=als rallying around 12:30, retracing in the afternoon then rallying to the=close. Gains in stock markets, Fed confidence in the US econom= and the increasing likelihood of aggressive stimulus in Europe are holding up the complex, but the re-wieghting of com=odity indexes is likely to result in a sell off in Nickel Ali and Zinc bet=een 8.14 Jan. Aluminium prices recovered as shorts were covered. &nb=p;Commerzbank expects to see a further rebound in coming days.Copper prices are suffering due to the sell off in the ener=y market. Nitaxis sees the Chinese Stare Reserve Bureau cutting its =urchases from 600-700 kMT in 2014 to - 300 kMT in 2015 as domestic supply c=tches up with demand. Zinc open interest is looking very high leading Macquarie to suggest that prices may be going=down this quarter.

Shanghai Aluminium on warrant stocks are down 3.52% =o 46.9 kMT. LME Aluminium on warrant stocks are flat at 1852.2 kMT. Shangh=i Copper on warrant stocks are up 0.97% to 31.1kMT. LME Copper stocks are=up 0.67% to 155.1 kMT. LME Nickel stocks are down 1.21% to 324.4 kMT.

Copper Vols are up 0.28% in the front, Ali Vols unch= Nickel Vols are unch in the front, up 0.27% in the back, Lead and Z=nc Vols unch

Upcoming Data

8/1- EC Consumer Confidence-Sury -10.9, Actual -1=.9, Prior -10.9 8/1- US Initial Jobless Claims-Sury 290k, Actual 294k, Prior 298k

Regards,

Prateek

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