Star equity manager Richard Buxton has warned the price of crude oil could crash to $50 a barrel in the near future, triggering further potential losses to funds struggling as a result of their high exposures to the sector.

A sharp fall in oil prices, leading to more general falls in markets, has already resulted in hundreds of millions in combined losses for UK-domiciled equity funds run by Jupiter Asset Management, Aberdeen Asset Management, M&G Investments and Schroders, according to analysis by Financial News.