Energy Product Derivatives - Benin

Benin

The nominal value in the Energy Product Derivatives market is projected to reach US$4.54bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.21% resulting in a projected total amount of US$5.58bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.12 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 42.83k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Benin is experiencing a notable shift in recent times. Customer preferences in Benin are increasingly leaning towards Energy Product Derivatives as a means of diversifying investment portfolios and hedging against market volatility.

This trend mirrors the global movement towards financial instruments that offer exposure to energy markets without the need for physical ownership. In Benin, the Energy Product Derivatives market is witnessing a surge in interest from local investors and financial institutions. This heightened activity can be attributed to the growing awareness of the benefits of derivatives in managing risk and optimizing returns in a dynamic energy market landscape.

Local special circumstances, such as the country's strategic location in West Africa and its emerging status as a regional economic hub, are contributing to the development of the Energy Product Derivatives market in Benin. The government's efforts to promote a conducive regulatory environment and attract foreign investment are also playing a crucial role in shaping the market dynamics. Underlying macroeconomic factors, including fluctuations in global energy prices, geopolitical events, and technological advancements in energy production, are influencing the demand for Energy Product Derivatives in Benin.

As investors seek ways to capitalize on market trends and mitigate risks, the use of derivatives as financial tools is becoming increasingly prevalent in the country's energy sector. Overall, the Energy Product Derivatives market in Benin is poised for further growth and innovation, driven by evolving customer preferences, local dynamics, and macroeconomic trends that are reshaping the energy landscape in the region.

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.