The head of the world's largest investment fund says markets should brace for a wave of bankruptcies across the global energy sector.
Larry Fink, CEO of BlackRock, has suggested that up to 400 firms many not survive the continuing oil-market rout, as falling revenues ensure that many firms will be unable to meet coming debt obligations.
According to Bloomberg, Fink told the New Jersey Pension Investment Council on Wednesday that "carbons are going to be cheaper for longer," echoing sentiment expressed last week in which he suggested the crude price, despite the recent rebound, had yet to hit its cyclical bottom.
Fink did not name the energy firms he thought were likely to fold, and he did he say at which level he though the crude price would bottom.
Bloomberg forecasts that independent American oil explorers are likely to report losses totaling almost $14 billion for 2015 after the crude price collapse.
Since August 2013, the US benchmark West Texas Intermediate crude futures have fallen 72%. They are down 14% this month.
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