Energy Stocks Likely to Rally With Obama

The energy sector has made some unprecedented moves this year, from unseen heights to quick collapses. How might our newly elected president affect this turbulent sector of our economy and the stocks associated with it?

The truth is no administration is likely to have a large influence on the overall motion in crude oil and energy stocks. It's been proven to me conclusively, in the last year particularly, that large global economic and capital forces have the most profound effect on the energy space.

In comparison to these global influences, actions from outgoing former-President Clinton and outgoing-President Bush as well as the few acts initiated by Congress have had little lasting effect on the sector. Emerging-market growth, still over 10% in China and India, remains the overwhelming fundamental influence to keep an eye on, even if the growth is slackening rapidly in this global recession.

On the other side, capital investment and contraction in the energy space, as evidenced in energy-specific hedge funds, exchange-traded funds and speculative concentrations are the overwhelming "non-fundamental" factor needed to track prices.

The year 2007 saw highs in crude oil approaching $150 a barrel and near-term lows closer to $60 a barrel, with energy-related stocks showing the same kind of volatility. These huge moves cannot be attributed to any governmental initiatives or ideas, whether Republican, Democratic or bipartisan.

With many more years of oil volatility on the horizon, we will be concentrating on global overarching themes and little on who's occupying the White House in order to stay ahead of this market and make some money.

That said, there are some fine-print observations on an Obama administration that could marginally help some energy-related stocks. Let's get to them.