Energy Product Derivatives - Algeria

Algeria

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$1.35bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.98% resulting in a projected total amount of US$1.81bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.01 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 272.00k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Algeria is experiencing a shift in customer preferences towards more diverse and sophisticated financial instruments.

Customer preferences: Customers in Algeria are increasingly looking for Energy Product Derivatives that offer them flexibility and risk management options. This trend is driven by a growing awareness of the benefits of using derivatives to hedge against price volatility and optimize investment strategies.

Trends in the market: One noticeable trend in the Energy Product Derivatives market in Algeria is the rising demand for futures and options contracts linked to energy products. This trend is influenced by the country's significant energy sector, particularly its natural gas and oil production. Traders and investors are leveraging these derivatives to capitalize on price movements in the energy market.

Local special circumstances: Algeria's unique position as a major energy producer in the region plays a crucial role in shaping the Energy Product Derivatives market. The country's reliance on energy exports makes it particularly sensitive to fluctuations in global energy prices. As a result, market participants in Algeria are keen on utilizing derivatives to manage their exposure to price risk effectively.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Algeria is also influenced by broader macroeconomic factors such as government policies, regulatory environment, and international trade relationships. The government's initiatives to promote the financial market and attract foreign investment are creating a conducive environment for the growth of derivatives trading. Additionally, Algeria's strategic location and economic ties with other energy-intensive countries contribute to the demand for energy derivatives as a financial tool for risk mitigation.

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.