The Reason For WTI Tanking -- President Biden Announces Another Huge SPR Sale -- June 14, 2022

This needs to be fact-checked but first indications are that President Biden will release another 45 million bbls of oil from the SPR. 

If true, this simply extends the duration of the pain. 

Bullish long term. 

Later:

Here's the Reuters story.

This story suggests this is not new, but rather previously announced. If so, someone is misleading Americans on these SPR sales. And they are sales, not swaps. 

By the way, our refineries are working at near capacity, so how is all this oil from the SPR handled?

First of all, it's not all that much. Maybe an extra one million bbls per day. In this case, the "45 million bbls being sold" is for deliveries that would take place from August 16, 2022, through September 30, 2022. Exactly one million bbls / day. Tomorrow, we will know if this is heavy sour oil or light sweet oil.

Second of all, and this is a fact, jack, the "sector" is loading this excess oil onto tankers to take to India where it is refined, and then the refined product is shipped back to the states. I would imagine, but don't know, that the largest recipient of refined products from India would be the state of California based on a number of factors. 

I'm sure we will know more as the story unfolds. 

From my point of view very little has changed with the "45-million-bbl-sale" story. But I could be wrong.