The world’s oil market is o the verge of collapse according to experts at Bank of America.

The bank warned that the OPEC oil cartel has essentially collapsed and that prices will fall below $50 dollars a barrel.  The weakest oil producers will be run from the industry and power will consolidate into a handful of producers.

“The consequences are profound and long-lasting,“ bank commodity chief Francisco Blanch told the London Daily Telegraph.

The move could drive many American oil producers out of the business.  At least 15 percent are unable to cover costs at the current oil price level and experts say that when prices fall below $55 a barrel over half the American producers will be forced to shut down.

The benefit then comes to middle east powerhouses such as Saudi Arabia which have large cash reserves that can help them weather a prolonged decline in oil prices.

Bank of America’s competitor Citibank has posted an opposite view, saying American shale oil producers can withstand as low as $40 a barrel.