With oil around $60, some U.S. shale producers will likely have to restructure because of their outstanding debt, Deutsche Bank analyst Oleg Melentyev told CNBC on Wednesday.
"We already are at a point where some of these issuers will not be able to come back to the debt markets to refinance and some of them will have no other choice but to restructure. So, at this point it is only a question of whether it is a small portion of the market ... or it really grows into a much bigger problem," he said in an interview with "Street Signs."
A recent report by Deutsche Bank shows that if oil prices hit $55 to $60 per barrel, the weakest U.S. shale producers could enter a "zone of deep distress."
If prices were to stay at those levels for a few months, the chance of a broad sector restructuring increases significantly, it said.
On Wednesday, U.S. crude futures for January settled at $60.94, a new five-year low, after U.S. data showed a surprise jump in oil inventories and OPEC cut its demand outlook for global oil consumption.
Read MoreUS oil settles at a new 5-year low