Sanctions on Russia are upending global energy markets, pushing up crude oil above $100 a barrel and sending U.S. gasoline prices to an average $4.30 a gallon, up nearly 50% in the last year.
It has also turned the energy sector into a superstar this year. Of the 11 sectors in the
S&P 500, energy has been a standout, blowing past the rest of the market with a 32% gain, against a 7% decline in the S&P 500.
Energy infrastructure stocks, including pipelines, transportation, storage, and logistics companies, have returned an average 16.6%, according to the Alerian Midstream Energy Index. That might not look great compared with the broader energy sector.
But infrastructure companies aren’t as volatile or closely correlated to crude oil prices as exploration-and-production, or E&P, companies. Infrastructure companies also tend to pay higher dividends, yielding…
