Energy Product Derivatives - Gambia

Gambia

The nominal value in the Energy Product Derivatives market is projected to reach US$63.23m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.45% resulting in a projected total amount of US$82.43m by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.01 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 8.32k by 2029.

Market

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Analyst Opinion

The Energy Product Derivatives market in Gambia has been experiencing notable developments and trends recently. Customer preferences in the Gambian Energy Product Derivatives market are primarily driven by a growing interest in financial instruments that allow for speculation on price movements without the need for physical ownership of commodities.

Traders and investors in Gambia are increasingly drawn to the potential for high returns and portfolio diversification that energy product derivatives offer. Trends in the market indicate a rising demand for energy product derivatives in Gambia, with more participants entering the market to hedge against price volatility and capitalize on market fluctuations. This trend aligns with the global movement towards increased financialization of commodity markets, where derivatives play a crucial role in risk management and investment strategies.

Local special circumstances in Gambia, such as the country's reliance on imported energy products and exposure to international market dynamics, contribute to the growing importance of energy product derivatives. Market participants in Gambia are leveraging derivatives to mitigate risks associated with price uncertainty and supply chain disruptions, highlighting the strategic role these financial instruments play in the local energy sector. Underlying macroeconomic factors, including currency fluctuations, inflation rates, and government policies, also influence the Energy Product Derivatives market in Gambia.

Economic stability and regulatory frameworks impact the attractiveness of derivative instruments to market participants, shaping the overall growth and development of the market 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.