Energy Product Derivatives - Chile

Chile

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$225.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.87% resulting in a projected total amount of US$299.80bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.08 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 3.23m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Chile is experiencing a notable increase in trading activity and investment interest.

Customer preferences: Investors in Chile are increasingly turning to Energy Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical assets.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Chile is the growing demand for renewable energy derivatives. As the country continues to focus on sustainable energy sources, there is a rising interest in derivatives linked to renewable energy products such as solar and wind power. This trend is in line with the global shift towards clean energy investments.

Local special circumstances: Chile's unique energy landscape, characterized by a mix of traditional and renewable energy sources, plays a significant role in shaping the Energy Product Derivatives market in the country. The government's push towards increasing renewable energy capacity and reducing carbon emissions has created opportunities for investors to participate in this transition through derivatives trading.

Underlying macroeconomic factors: Macroeconomic factors such as regulatory changes, geopolitical events, and global energy supply dynamics also impact the Energy Product Derivatives market in Chile. For instance, fluctuations in oil prices, changes in government policies related to energy production, and international trade agreements can all influence the performance of energy derivatives in the market. As Chile aims to further develop its renewable energy sector and reduce its dependence on fossil fuels, the Energy Product Derivatives market is expected to continue evolving in response to these macroeconomic factors.

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.