According to global commodities trading firm Gunvor, oil prices falling to $60 during the worst of the recent market downturn signaled a market pricing in zero demand growth for the year.

The comment highlights how sharply sentiment deteriorated in energy markets as macroeconomic uncertainty and geopolitical risks weighed on investor confidence. Gunvor’s assessment implies that oil markets may have overreacted, given that physical demand has remained relatively stable in key regions.

Per Bloomberg, the oil rout saw futures drop amid concerns over global growth, inflation persistence, and weak manufacturing activity across Europe and parts of Asia.

However, traders now view the $60 level as having been a bearish overshoot based on fear rather than fundamentals.

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