Energy Product Derivatives - Argentina

Argentina

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$363.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.34% resulting in a projected total amount of US$494.10bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$10.96 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 35.37k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the evolving landscape of the Energy Product Derivatives market in Argentina, it is intriguing to note that customer preferences are increasingly shifting towards more diversified and sophisticated investment strategies in the energy sector.

Customer preferences: Argentinian investors are displaying a growing interest in Energy Product Derivatives as they seek to capitalize on the volatility and potential high returns in the energy market. With a desire to hedge against price fluctuations and speculate on future price movements, investors are turning to derivatives to manage risk and enhance their portfolio performance.

Trends in the market: The Energy Product Derivatives market in Argentina is witnessing a surge in trading volumes and liquidity as market participants actively engage in various derivative products such as futures and options. This trend is being driven by the increasing participation of institutional investors, fund managers, and speculators who are attracted to the potential profit opportunities offered by energy derivatives.

Local special circumstances: Argentina's energy sector is undergoing significant transformation with government reforms and privatization efforts, leading to a more dynamic and competitive market environment. This restructuring has created opportunities for investors to leverage derivatives to gain exposure to the changing dynamics of the energy industry and optimize their investment strategies accordingly.

Underlying macroeconomic factors: Macroeconomic factors such as geopolitical events, global energy demand, and regulatory changes play a crucial role in shaping the Energy Product Derivatives market in Argentina. The country's economic stability, inflation rates, and currency fluctuations also impact investor sentiment and trading activities in the energy derivatives market. As Argentina continues to navigate through economic challenges and policy reforms, the energy derivatives market is expected to remain a key avenue for investors to manage risk and seek returns in a dynamic market environment.

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.