Dodge City suffered on Wednesday morning from "sticker shock."
Gasoline prices jumped by 10 cents at many area gas stations overnight — Murphy USA, Dillons, Kwik Shop and Love’s were all at $2.15 a gallon on Monday, but by Wednesday morning all Dodge City stations were at $2.25 or higher.
Two incidents are mostly to blame for the higher prices. The first was an explosion at an oil rig in a Louisiana lake on Sunday night. The explosion injured seven with one person still missing at Lake Pontchartrain.
The second incident involved Iraqi troops engaging with Kurdish rebels in northern Iraq — near the nation’s oil fields.
According to a report from CNBC, oil flows through Iraqi Kurdistan to Turkey have plunged this week after Iraq's army seized oil fields held by the Kurds.
The drop follows reports of production disruptions as major oil fields changed from Kurdish to central government control on Monday and Tuesday.
Crude oil shipments through the Iraq-Turkey Pipeline have fallen to one-third of their usual volumes, shipping sources said. Total exports through the line were at 190,000 barrels a day.
The pipeline runs through the semiautonomous Kurdish region in Iraq’s north and typically ships up to 600,000 barrels a day. Flows had already fallen to 350,000 barrels a day by Tuesday.
Oil fields around Kirkuk were reducing production and close to shutting down, sources said. Operators were drawing on oil in storage, threatening to also slow the shipment of crude by tanker, the sources said.
The week started with gasoline prices falling throughout the state and nation. According to GasBuddy.com, gas prices in Kansas fell by almost 2 cents with a drop of a little under 2 cents nationally.
"For the fifth straight week, the national average gasoline price has moved lower. Though not all states saw decreases in the last week, we nonetheless saw the nation’s average price per gallon fall as we continue into the peak of fall, which is hardly a surprise," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "While prices nationally remain an average of 20 cents higher than a year ago, we’ll likely continue to see improvement at the pump into a sixth week as supply outpaces demand and gasoline inventories continue their slow recovery as we soon close out an active hurricane season."
While gasoline prices climbed, oil prices haven’t changed as much. Oil prices stayed stagnant as inventories remain high and US production continues to climb.
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