Something's changed in the oil market: even the most stubborn of bulls are "losing their religion" and accepting that they may never again see the price back above $100 a barrel. Look at the dynamics of supply and demand and you can see why. On the supply side it's all about shale. And on the demand side, all the bulls need to look at to chuck in the towel is Volvo. The firm announced last week that it intends to stop producing petrol and diesel engines from 2019 they will all be hybrid or electric only.
This could also mark something of an inflexion point in the history of energy. While we wait to see if it does, a quick thought on what this news might prompt you to sell and to buy. For the former, think about Tesla. Earlier this year its market cap overtook those of both Ford and GM. It has fallen off, but is still "offensively overpriced" and now about to lose its "rarity value" to an efficient global brand, says Jonathan Allum of SMBC Nikko. For the latter, how about a great house on a really busy road? These sell for 20% to 40% less than those away from roads. Buy a nice foursquare Georgian rectory at the end of a pretty lane today, says buying agent Henry Pryor, and you'll pay a good 30% more for it than its twin on an A road.
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