Shale Oil Tower For the past few weeks, maintenance, sabotage, wildfire, strikes and rebel attacks have added to supply-side disruptions, as shown in the chart below . So now, everyone’s celebrating the disasters, and even ultra-bearish Goldman Sachs is suddenly bullish on oil —but how far is this rally really going to go? (Click to enlarge) Supply from Nigeria is at its lowest in decades; Canadian output has suffered due to massive wildfires, U.S. oil production is at 8.8 million barrels per day owing to the bankruptcies of shale oil drillers, and Venezuela is in a crisis that could reduce its output by more than 188,000 b/d. Oh, and the majority of Libya’s production from its eastern fields has been sidelined due to rival government squabbling that’s left its eastern port under blockade. Related: Oil Markets Balancing Much Faster Than Thought (Click to enlarge) Considering the shortages, Goldman has […]