Energy Product Derivatives - EAEU

EAEU

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$641.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.73% resulting in a projected total amount of US$770.60bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.00 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 493.90m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in EAEU is experiencing a significant increase in trading activities and product offerings.

Customer preferences: Traders in the EAEU region are showing a growing interest in Energy Product Derivatives as a way to hedge against price volatility and speculate on future price movements. The derivatives market provides them with the opportunity to manage risk and potentially generate higher returns compared to traditional investment options.

Trends in the market: One of the key trends in the Energy Product Derivatives market in the EAEU region is the expansion of product offerings to include a wider range of derivative instruments. This trend is driven by the increasing demand from market participants looking for more diverse and sophisticated trading options. Additionally, there is a noticeable trend towards electronic trading platforms, which offer greater transparency and efficiency in trading Energy Product Derivatives.

Local special circumstances: The EAEU region, comprising countries with diverse energy landscapes and regulatory environments, presents unique opportunities and challenges for the Energy Product Derivatives market. For example, countries rich in natural resources may see higher trading volumes for derivatives linked to specific energy products, while countries with energy import dependencies may use derivatives to manage price risks associated with imports.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in the EAEU region is also influenced by broader macroeconomic factors such as geopolitical events, energy policy decisions, and global economic trends. These factors can impact energy prices and market dynamics, leading to fluctuations in derivative prices and trading volumes. Additionally, regulatory changes and market reforms play a crucial role in shaping the growth and stability of the Energy Product Derivatives market in the region.

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.