According to a July 28 report, Magellan Midstream Partners LP marked that the volumes in the last quarter on the Longhorn and BridgeTex pipelines that carry crude from the Permian Basin to Houston dropped dramatically since shippers likely exported barrels, meanwhile, refined product volumes grew on pandemic demand recovery.

After the outbreak of the conflict in Ukraine, Europe's request for barrels increased and shippers on the long-haul crude oil lines took volumes elsewhere, likely to be exported from the main port for oil exports – Corpus Christi, Texas, which is the largest U.S. crude export port.

Being an example of potential decisions that U.S. shippers could be making the moves are expected to be temporary. Shippers that did not fulfill their obligations would still have income which is known as deficiency payments, which are actually penalties for not transporting oil.

Volumes on the 450-mile (724-km) Magellan's wholly-owned Longhorn crude oil pipeline from West Texas to Houston averaged approximately 200,000 bbl/d in the three months ended June 30 in contrast with 260,000 bbl/d in the same period the year before.

A joint venture, the BridgeTex crude pipeline from the Permian to Magellan's East Houston terminal dropped to 215,000 bbl/d from virtually 315,000 bbl/d in the year-ago period.

The Tulsa, Okla.-based company expects relatively flat volumes for a few years on the Longhorn and the Bridgetex crude pipelines.

Meanwhile, on the Saddlehorn pipeline in Colorado, another joint venture, volumes were almost the same, and levels on the company's South Texas systems rose.

However, volumes on the most prominent common carrier refined products pipeline system in the U.S. increased 3% partly because of pandemic demand recovery.

Income from oil storage plunged as a steeply risen-in-price market made holding barrels less attractive and following contract expirations while operating expenses grew $28 million.

Magellan is an important owner of tanks at the Cushing, Okla., storage hub, where levels have held almost above the operational lows of 20 million barrels in recent weeks. Magellan has a 9,800-mile refined products pipeline system with 54 connected terminals and two marine storage terminals (one of which is owned through a joint venture). Moreover, it owns about 2,200 miles of crude oil pipelines, a condensate splitter and storage facilities with an aggregate storage capacity of about 39 million barrels, of which 29 million are used for contract storage. Approximately 1,000 miles of these pipelines, the condensate splitter and 31 million barrels of this storage capacity (including 25 million barrels used for contract storage) are wholly-owned, and the remainder is owned through joint ventures.