Energy Product Derivatives - Albania

Albania

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$5.18bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.41% resulting in a projected total amount of US$7.06bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.13 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 44.24k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Albania is experiencing a notable growth trajectory in recent years.

Customer preferences: Market participants in Albania are showing a growing interest in Energy Product Derivatives as a means to hedge against price volatility and speculate on future price movements. This is driven by a desire to manage risk exposure and potentially increase returns on investment in the energy sector.

Trends in the market: One key trend in the Albanian Energy Product Derivatives market is the increasing participation of institutional investors, including hedge funds and asset management firms. These entities are attracted to the market due to its potential for high returns and portfolio diversification benefits. Additionally, there is a rising demand for more sophisticated derivative products tailored to the specific needs of investors in Albania.

Local special circumstances: Albania's energy sector is undergoing significant reforms and modernization efforts, which are creating new opportunities for derivative market participants. The government's focus on improving energy infrastructure and increasing energy efficiency is driving interest in Energy Product Derivatives as a way to capitalize on these developments. Moreover, the country's strategic location in the Balkan region makes it a key player in the energy market, further boosting the demand for derivative instruments.

Underlying macroeconomic factors: The overall economic stability and growth in Albania are contributing to the positive momentum in the Energy Product Derivatives market. As the country continues to attract foreign investment and diversify its economy, investors are increasingly looking to capitalize on the opportunities presented in the energy sector. Additionally, the government's efforts to enhance regulatory frameworks and promote financial market development are creating a conducive environment for the expansion of derivative trading activities in Albania.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.