Despite the modest market reaction to the Saudi-led oil production curbs, UBS said the kingdom's decision to slash output should further support prices into the second half of 2023.

Global wealth manager UBS has forecast that Brent crude will reach $95 a barrel by the end of 2023.

"We keep oil as most preferred and forecast Brent crude at $95 a barrel by end-2023, up from $77.90/bbl at present," Mark Haefele, Global Wealth Management CIO at UBS said.

"We like longer-dated oil contracts and recommend selling volatility in Brent crude oil," he said. 

According to UBS, real assets along with yield-generating structured investments offer alternative ways to add durable returns.

"Alongside commodities like oil, investors may also consider other real assets, such as infrastructure investments that can help stabilize long[1]term income generation in a multi-asset class portfolio," Haefele said.

(Writing by Seban Scaria; editing by Daniel Luiz)