ONEOK (NYSE: OKE) is taking an unusual step to support fuel supply along the U.S. Gulf Coast, reversing flows on a segment of its Magellan pipeline system to move product from Oklahoma into Texas.
The pipeline segment typically transports refined products northbound, but tightening inventories on the Gulf Coast have prompted a temporary shift in direction. The move comes as U.S. fuel exports continue to surge, driven by global supply disruptions linked to the ongoing conflict in the Middle East.
Jet fuel exports have been particularly strong, rising for a fifth consecutive week to a record 442,000 barrels per day, according to the U.S. Energy Information Administration (EIA). Increased international demand is pulling more product out of Gulf Coast markets, placing pressure on regional supply levels.
ONEOK said it is working closely with customers to ensure fuel reaches key demand centers, while monitoring market conditions and adjusting operations as needed.
The reversal highlights the growing role of U.S. infrastructure flexibility in balancing domestic supply with global energy demand, especially during periods of geopolitical instability.
Author: phinds
