Group 1 - Morgan Stanley predicts that if regional conflicts escalate, oil prices could rise to $120 per barrel [1] - The bank's forecast for Brent crude oil futures in Q1 next year is set at $55 per barrel, excluding geopolitical risk premiums or significant oil supply disruptions [1] - The bank recommends increasing positions in high-quality Asian energy companies, specifically China National Petroleum Corporation (00857.HK), raising its H-share target price to HKD 8 due to breakthroughs in Xinjiang gas fields [1] Group 2 - The bank advises selling China Petroleum & Chemical Corporation (00386.HK), anticipating disappointing Q2 performance [1] - The most bearish outlook is on airline stocks, particularly Air China (00753.HK) and China Southern Airlines (01055.HK) [1] - For shipping companies, higher freight rates are expected to offset the negative impact of increased fuel costs, with a preference for Evergreen Marine and China COSCO Shipping Corporation (01919.HK) [1]