Energy Product Derivatives - Americas

Americas

The nominal value in the Energy Product Derivatives market is projected to reach US$30.04tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.68% resulting in a projected total amount of US$32.65tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.07 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 424.90m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Americas is a dynamic and evolving sector that is influenced by various factors.

Customer preferences: Customers in the Americas region are increasingly showing a preference for energy product derivatives as a way to hedge against price volatility in the energy market. Derivatives offer a way to manage risk and speculate on price movements without the need to physically trade commodities.

Trends in the market: In the United States, the Energy Product Derivatives market is seeing a surge in activity due to the shale revolution, which has significantly increased the country's production of oil and natural gas. This abundance of energy products has led to a growing demand for derivatives as market participants look to capitalize on price fluctuations.

Local special circumstances: In South America, countries like Brazil and Venezuela play a significant role in the Energy Product Derivatives market. Brazil, with its booming energy sector, is becoming a key player in the derivatives market as the country seeks to expand its energy infrastructure. On the other hand, Venezuela's economic and political instability has created unique challenges for energy derivatives trading in the region.

Underlying macroeconomic factors: The overall economic stability and regulatory environment in the Americas greatly impact the Energy Product Derivatives market. Countries with strong economic growth and transparent regulatory frameworks tend to attract more investment in derivatives trading. On the other hand, political uncertainties and currency fluctuations can deter market participants from engaging in derivative transactions.

Methodology

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.