Fund managers think oil is only mildly undervalued at $60 a barrel despite a steep drop in its price, according to analysis of their opinions by Bank of America Merrill Lynch.

A "net 33%" of the 177 managers polled in BAML's monthly fund manager survey, released on Tuesday, think oil should be worth more. That means that "undervalued" beat "overvalued" by 33 percentage points when the bank asked respondents to pick between the two options.