NEW YORKThe closure of some U.S. oil refineries will have a net benefit to Magellan Midstream Partners LP’s refined products pipeline systems, the company’s CEO said on Sept. 9.

“It creates the opportunity for more volume movement to replace what the refinery was putting into the market directly and it will create a longer-haul movement for existing volumes because they need to be transported from farther away,” said Mike Mears, speaking at the Barclay’s CEO Energy-Power conference.

Multiple North American oil refiners have announced closures, or plans to repurpose their plants, as global fuel demand remains lower after plummeting from stay-at-home orders caused by the coronavirus health crisis.

Crude oil benchmarks are trading near three-month lows as the pandemic continues, with coronavirus cases rising in parts of Europe, India and in areas of the United States.