Leading business investor and island resident Jim Mellon says the recent spate of fine weather could have spin-off effects for the energy and oil industry.

Mr Mellon believes the recent bout of high temperatures in places including the Isle of Man, could ‘propel the green energy revolution.’

But he reckons investors should stick with the oil sector for now.

According to the Sunday Times Rich List, Mr Mellon has increased his wealth by £80 million to £1billion.

He gives his ‘Mellon on the Markets’ advice in the latest Master Investor online magazine.

His views are always closely followed by global investors.

He says: ‘At no point in my life has tempus seemed to fugit more than now.’

[Tempus fugit is a Latin phrase translated as ‘Time flies’]

He adds: ‘This year is nearly half over.

‘I am at my house in the Isle of Man, a glass-fringed old café, and the place is boiling.

‘Is this climate change or just an early summer?

‘Who knows, but all this extraordinary weather will undoubtedly further propel the green energy revolution, especially as oil prices have recently been on the rampage.’

Mr Mellon says a colleague, Anthony Chow, wrote an article last year on options to generate income on favoured (or unfavoured) shares ‘and I think now might be a good time to sell (i.e. to go long, or neutral) calls on stocks such as BP and Shell, which surely are significantly undervalued at these oil prices.

‘What is certain is that although US production of shale oil is rapidly rising to match rising prices, the overall productivity of fields in the US is declining, and political “stuff” like Venezuela and Iran doesn’t help.

‘Energy costs as a percentage of world GDP have been rising sharply, and although that in itself – plus the fact that we are at the latter stage of world economic recovery and that interest rates are rising – should mean a slowing world economy, oil demand should still be pretty good for a while.

‘So, I would load up on oil majors for a good 10% or so bounce, and I would also look at the providers of services (Schlumberger (NYSE:SLB), etc.) as opportunities.

‘There is so much scepticism about fossil fuels that these types of laggards are interesting in a tech-concentrated market.

‘My chum Will Nutting is a believer in this and boy, he’s a great commentator who I take very seriously indeed.

‘Although there is roaring interest in all things green as a result of the oil price surge and aberrant weather in various places (as well as the life choking pollution in China), there isn’t a lot to choose from that makes sense stock market wise.

‘So, I would just stick to the oil sector.

‘Coal isn’t a great idea, nor is nuclear, as there are too many risks.’