JPMorgan in talks to sell oil-supply agreement to BoA

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JPMorgan Chase & Co (JPM.N) is in talks to sell its oil-supply agreement with a major Philadelphia refinery to Bank of America Corp (BAC.N), the Wall Street Journal reported Tuesday, citing people familiar with the matter.

Under JPMorgan's deal with Carlyle Group-owned (CG.O) Philadelphia Energy Solutions, the company supplies the refinery with crude oil and credit and receives refined fuel products that it can trade, the Journal said. (on.wsj.com/W84NRE)

According to the WSJ, discussions between the banks have been going on for a while and it is still possible they could fall apart.

The deal was supposed to be a part of JPMorgan's $3.5 billion sale of its physical commodities business to Swiss trading house Mercuria earlier this year.

However, sources told the WSJ that Philadelphia Energy refused to accept Mercuria as a partner in the arrangement, adding that Mercuria also was not interested in the business.

Both JPMorgan and Bank of America were unavailable for comment.

Tags
JPMorgan Chase & Co, Bank of America Corp., Carlyle Group

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