XOM - Refiners asked to bear risk as White House doubles down on bearish oil price view

The  recently announced Strategic Petroleum Reserve ("SPR") release shows the White House doubling down on its view that oil prices will fall in 2022 32m of the 50m barrel release will come as an "exchange" of barrels, whereby participants will receive barrels today in exchange for an obligation to return barrels to the SPR in years ahead In the Department of Energy's November Short Term Energy Outlook, the administration defends its view that West Texas oil prices will fall to ~$60 by the end of 2022 Conversely, only yesterday Bank of America warned of $120 oil in 2022, which would result in SPR Exchange participants  - e.g., (NYSE:XOM), (NYSE:CVX), (NYSE:VLO), (NYSE:PSX), (NYSE:MPC) - realizing heavy losses as they are forced to refill the SPR at significantly higher future prices For refiners to avoid the risk of refilling the SPR at higher prices, they will be forced to buy 2022+ oil futures

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Refiners asked to bear risk, as White House doubles down on bearish oil price view