- Oil is trading higher this morning, after back-to-back weekly declines
- The Enbridge Line 5 tunnel project received an essential permit on Friday. Still, construction is not likely to begin until next year
- Goldman Sachs Research expects an expedient recovery, where demand will reach pre-virus levels by August. Furthermore, the bank nearly doubled its 1H2021 deficit estimate from 0.5 MMBbl/d to 0.9 MMBbl/d
- The Enbridge Line 5 tunnel project under the straits of Mackinac in Michigan receives key wetlands and wastewater discharge permit approvals
- Enbridge expects to begin construction on the tunnel next year and announced on October 14 that 90% of the design work is complete
- The Line 5 pipeline carries up to 540,000 barrels daily of NGLs and crude
- The oil market re-balancing has continued to beat Goldman's expectations
- Goldman expects the market to have an average deficit of 0.9 MMBbl/d during 1H2021, compared to a previous forecast of 0.5 MMBbl/d
- The tighter starting point in 2021 more than offsets a slower recovery in fuel demand, according to the bank
- Goldman still expects global oil demand will reach its pre-virus level of 100 MMBbl/d by August