Energy Product Derivatives - Colombia

Colombia

The nominal value in the Energy Product Derivatives market is projected to reach US$252.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.69% resulting in a projected total amount of US$333.20bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.60 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 451.40k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Colombia has been experiencing a notable increase in trading activities over the past few years.

Customer preferences: Traders in Colombia have shown a growing interest in Energy Product Derivatives due to their potential for high returns and portfolio diversification. Investors are increasingly looking for alternative investment options to traditional stocks and bonds, driving the demand for these financial instruments.

Trends in the market: One significant trend in the Colombian Energy Product Derivatives market is the rise in trading volume of derivatives linked to oil and natural gas prices. This trend is influenced by the country's status as a major oil producer in Latin America, making energy derivatives particularly attractive to investors seeking exposure to this sector.

Local special circumstances: Colombia's geographical location and political stability play a crucial role in shaping the Energy Product Derivatives market. As a key player in the region's energy industry, Colombia's policies and regulations impact derivative trading activities. Additionally, the country's growing energy consumption and production levels contribute to the demand for energy derivatives.

Underlying macroeconomic factors: Macroeconomic factors such as global energy prices, currency exchange rates, and geopolitical events also influence the Energy Product Derivatives market in Colombia. Fluctuations in oil and gas prices, as well as changes in government policies, can create opportunities and risks for investors trading energy derivatives in the Colombian market.

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.