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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, suggests up to 400 firms many not survive the current oil market rout as falling revenues ensure many firms will be unable to meet upcoming 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 suggests that the crude price, despite the recent rebound, was still yet to hit its cyclical bottom.

Fink made no specific mention of the energy firms that were likely to fold, nor stated 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 following the crude price collapse.

From August 2013, WTI crude futures have fallen 72%. In 2016 alone they are down 14%.

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