Magellan Midstream Partners LP, which specializes in petroleum storage and transportation, said demand for its services swelled in the fourth quarter and is expected to grow further this year as consumption of travel fuels mounts.

U.S. crude inventories

Tulsa-based Magellan said Wednesday in its fourth quarter earnings release that the refined products business, which comprises about 70% of operating margin, benefited “from significantly improved transportation volumes” compared with late 2020 levels “due to the recovery in travel, economic and drilling” activity.

“We assume that refined products pipeline shipments continue to increase during 2022,” with fuel demand and economic momentum expected to trend favorably through the year, CEO Michael Mears said during an earnings call with...