HEADLINES: Saudi Energy Minister Calls OPEC Output Boost ‘Inevitable’
President Donald Trump returned from Singapore and the U.S.-North Korea summit and got right to work again, blasting OPEC for high oil prices. That came even as prices fell amid expectation that OPEC may relax its output cuts at its meeting in Vienna next week. Saudi Arabia’s energy minister Khalid al-Falih said it’s “inevitable” that OPEC and its allies will agree to boost oil out gradually. He told reporters in Moscow, “I think it will be a reasonable and moderate agreement.” The meeting takes place June 22.
Phillips 66 plans to expand its NGL project in Sweeny, Texas. The expansion includes the construction of two natural gas fractionators with a capacity of 150,000 barrels per day each. Supply agreements have been secured for Y-grade NGL feedstock, including an agreement with DCP Midstream, which has an option to acquire up to a 30% ownership interest.
Exxon Mobil Corp. and Plains All American Pipeline signed a letter of intent to form a joint venture and are working together to build a Permian crude oil and condensate pipeline to the Texas Gulf Coast.
In A&D news, Pioneer Natural Resources agreed to sell all of its Raton Basin assets in southeastern Colorado, moving closer to becoming a pure Midland Basin player. Pioneer will sell the assets to Evergreen Natural Resources LLC for $79 million.