Expert Opinions on Saudi Cut: Morgan Stanley vs. Goldman Sachs

Saudi Arabia has pledged an additional production cut of 1 million barrels per day in July to stabilize the oil market, while Russia and the United Arab Emirates made no commitment to curb further. Analysts from Morgan Stanley and Commonwealth Bank of Australia believe that the cut may support prices in the short term, but the broad market dynamics for the rest of 2023 and into 2024 remain practically unchanged. Meanwhile, analysts from Goldman Sachs, RBC Capital Markets, Vanda Insights, and ANZ Group Holdings Ltd. believe that the move is moderately bullish and signals a commitment to continue to lean against the shorts and leverage its unusually high pricing power.