Energy Product Derivatives - Chad

Chad

The nominal value in the Energy Product Derivatives market is projected to reach US$3.68bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.85% resulting in a projected total amount of US$4.89bn 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 31.83k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Chad is experiencing a notable shift in recent years, reflecting the global trend towards increased financialization of commodities trading.

Customer preferences: Customers in Chad are increasingly drawn to Energy Product Derivatives as they offer a convenient way to speculate on price movements without needing to physically handle the underlying assets. This aligns with the broader global shift towards financial instruments in commodity markets.

Trends in the market: In Chad, there is a growing interest in Energy Product Derivatives due to their potential for higher returns compared to traditional investments. This trend is driven by the desire of investors to diversify their portfolios and seek alternative sources of revenue in a challenging economic environment.

Local special circumstances: Chad's unique position as an oil-producing country plays a significant role in shaping the Energy Product Derivatives market. The country's reliance on oil exports makes it particularly sensitive to fluctuations in global energy prices, driving increased participation in derivative markets to hedge against price risks.

Underlying macroeconomic factors: The macroeconomic landscape in Chad, characterized by fluctuations in oil prices and geopolitical uncertainties, underscores the importance of Energy Product Derivatives in managing risk exposure. As market participants seek ways to mitigate volatility, the demand for these financial instruments is expected to continue growing in the country.

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.