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spot oil trading-surge

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(Globalpost/GlobalPost)

By Kang Yoon-seung

SEOUL, March 28 (Yonhap) -- The volume of oil products traded on the spot trading system run by the country's bourse operator jumped in February as more retailers rushed to buy petroleum goods at cheaper prices, the Korea Exchange (KRX) said Thursday.

According to the KRX, the average daily trading volume of diesel oils on the trading system came to 8.23 million liters in February, skyrocketing from 94,000 liters tallied in April 2012 when it launched the service.

The average daily trading volume of gasoline products also surged 36-fold to 945,000 liters over the cited period, compared to 26,000 liters tallied in April 2012, the KRX said.

The volume accounted for 10 percent and 2.2 percent of the country's daily diesel and gasoline transactions in February, the data showed.

In terms of value, diesel and gasoline goods traded daily on the system came to 82.3 billion won (US$74.1 million) and 9.4 billion won, respectively.

The spot oil trading service was launched in April 2012 by the KRX in a bid to bolster the local oil transaction market and help stabilize energy prices.

Franchise dealers, gas station owners taking part in the trading system as buyers and all industry players in the oil sector, regardless of nationality, are able to join the trading. Individuals and brokerage houses, however, are excluded.

Nearly 12 percent of the country's 11,032 private gas stations made transactions via the system, the KRX added, which allowed them to purchase oil products at below-market prices.

"The system eased the market domination of the country's top four oil refiners by allowing smaller players to participate in the transactions," the KRX said.

The bourse operator added it will continue to make efforts in stabilizing oil prices in line with the new government's efforts to keep consumer inflation under control.

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