KUALA LUMPUR (April 3): The global oil industry could face losses of US$1 trillion over the next decade if crude oil price remains below US$60 per barrel, according to an article in energy news site Oilprice.com.

In a report April 2, Oilprice.com contributing writer Henry Trinh said analysts’ 2015 predictions for crude oil had ranged from US$30 to an average of about US$60 per barrel of WTI crude oil.

He said that with the current price of US$49 and considering the massive oil glut, most investors were still bearish on crude oil.

Trinh said contrarians such as Goldman Sachs and Deutsche AG were not as bearish based on a few projections.

“Quite frankly, Goldman Sachs does not see the current price of oil as being sustainable.

“The firm expects the global oil industry to face a loss of $1 trillion over the next decade if the price remains below $60 per barrel.

“Besides this, contrarians are also expecting conflicts in the Middle-East to play a large role in boosting the price of crude oil through a reduction in supply channels,” he said.

On a separate note, Trinh said that surprisingly the flow of crude oil was still accelerating, much like the money going into crude oil funds.

“As a retail investor, it can sometimes be challenging to understand all of the moving pieces surrounding our investments, especially without access to an expensive wealth advisor.

“Thus, by observing where institutional investors are putting their money, retail investors may be able to get a sense of what both the market is doing as well as contrarians,” he said.