Standard & Poor's Equity Research, one of the leading provider of independent equity research, has upgraded its recommendation on Asia's energy sector to Overweight from Marketweight, following the increase in its 2006 and 2007 crude oil price forecasts.

S&P forecasts that the 2006 and 2007 crude oil price would reach 72 U.S. dollars/bbl and 76 U.S. dollars/bbl from 68 U.S. dollars/bbl and 66 U.S. dollars/bbl.

The significant increase in projections comes on the back of recent developments including a pick-up in global demand, and an update from global insight which revises expectations for crude prices to average 80 U.S. dollars/bbl this winter and not fall below 70 U.S. dollars/bbl until 2009.

Standard & Poor's Vice President of Equity Research, Lorraine Tan said, "We believe downside risk is relatively low at present with most stocks facing potential earnings upgrades."

S&P is one of the world's leading provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data, with about 7,500 employees in 21 countries and regions.

Source: Xinhua