From: Daniel Sabba Sent: 3/31/2015 8:06:56 PM To: jeffrey E. [[email protected]] cc: Vahe Stepanian i Ariane Dwycr iy | Subject: FW: EOD Commodities Note - 31 Mar Importance: — High From: Prateek Jain Sent: Tuesday, March 31, 2015 4:06 PM Subject: EOD Commodities Note - 31 Mar OIL All eyes on Iran talks today which were extended by a day into Wednesday. Earlier in the day, a US official suggested that negotiation may continue another day past deadline if ‘it’s useful to do so’. Another Russian official commented that a deal was ‘closer and closer’. This optimism about an agreement, at least on some points, weighed heavily on oil today with Brent dropping 2.5%. In my opinion, even if the talks end positively with agreement on key points, the deal has been softened enough compared to what was originally sought by President Obama, and is going to face a tough challenge being approved by a skeptical Congress, which is in fact proposing to impose new sanctions on Iran. Nigeria’s elections ended today easing the political tension, with the ex-military ruler Buhari’s winning against the incumbent President. In short term, this eased any immediate violence concerns in the country, but this shift in power can lead to the movement of the Boko Haram violence to southern oil producing region of Nigeria and any developments there need to be carefully watched. In other news, Yemen rebels seized military base at Bab el-Mandeb, overlooking the key shipping route while Saudi-led coalition kept bombing Houthi occupied sites.. Vols were stronger with wings being bought aggressively today as oil can move quickly away from current levels depending on Iran deal outcome.. overall vols gained about 1% across the curve WTI (/change) BRE (/change) K15 52.50% +1.45% 51.10% +1.05% M15 51.20% +2.10% 47.90% +0.90% Z15 37.10% +1.00% 35.15% +0.70% 216 26.20% +0.10% 26.40% +0.55% Metals 3m lvls dod change support resistance Al $1785 -$12.5 $1750 $1800 Cu $6041 -S41 $6000 $6300 Zn $2081 -$28 $2