Introduction of new commodities to our institutional offer

As a result of the new trends and the change in energy pricing, we have decided to add subsequent energy assets to our liquidity offer.

Outlook for the oil market

Oil has a stellar start of a new year. Not only prices managed to break above 2021 highs but Brent’s price even managed to reach the highest level since 2014. Both major grades of oil – Brent and WTI – are trading over 12% year-to-date higher. Almost every major institution expected that 2022 will be marked with significant oversupply. Oversupply was expected to lead to the rebuilding of inventories that have been dropping for a dozen or so months and reached the lowest levels in 5 years. 

There are many factors behind the recent price rally, mostly one-off factors. Recent supply disruptions in Libya and Kazakhstan are perfect examples of such factors. Hit from Omicron turned out to be smaller-than-expected and OPEC+ may struggle to continue to increase output amid low spare capacity. Apart from that, tensions in the Middle East are on the rise again with Yemeni Houthis launching drone attacks on airports in the United Arab Emirates.

Key themes in the oil markets this year will be supply and demand balance. Changes in Fed’s policy will also have an impact on oil due to its impact on USD.

Below is the list of the energy commodities present in the X Open Hub liquidity offer:

• OIL
• OLI.WTI
• NATGAS 
• EMISS 
• LSGASOIL 
• GASOLINE 

This is an excellent opportunity for our partners to attract their retail traders to energy commodities markets. Furthermore, after the first two weeks of 2022, energy commodities are undoubtedly the top-performing commodity class. This is a great possibility for our partners to entice their retail customers to this type of investment. We want our partners to have access to new products and services, and we want to assure them that if they stick with us, they will find all they need to keep their business innovative and flexible.

Krzysztof Wysocki – Broker Solution Specialist

Integration with X Open Hub liquidity can be conducted within 48 hours. The offer can be provided via FIX 4.3 and FIX 4.4, MT4/MT5 GW, our proprietary xAPI, and all the major bridge providers i.e. PrimeXM, OneZero, Gold-i, and others. The hedge accounts can be handled in multiple currencies.