Energy Product Derivatives - Guinea

Guinea

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$846.70m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.96% resulting in a projected total amount of US$933.00m by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.03 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 33.35k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Guinea is experiencing a notable increase in trading activities and market participation. Customer preferences in Guinea are shifting towards Energy Product Derivatives as investors seek to diversify their portfolios and hedge against energy price fluctuations.

This trend mirrors the global market, where derivatives are becoming increasingly popular due to their potential for high returns and risk management capabilities. In Guinea, the Energy Product Derivatives market is witnessing a growing interest from local institutional investors and financial institutions. This surge in participation is driven by the desire to capitalize on the volatility of energy prices and leverage derivatives for speculative purposes.

Additionally, retail investors are also showing interest in these financial instruments as they become more accessible through online trading platforms. Local special circumstances, such as the country's heavy reliance on imported energy products and its vulnerability to global energy price fluctuations, are contributing to the development of the Energy Product Derivatives market in Guinea. Market participants are turning to derivatives as a way to mitigate risks associated with price volatility and secure their energy-related investments.

Underlying macroeconomic factors, such as Guinea's economic stability and regulatory environment, are also playing a crucial role in shaping the Energy Product Derivatives market. As the country continues to strengthen its financial infrastructure and improve regulatory frameworks, investors are gaining more confidence in participating in derivative markets. Additionally, the government's efforts to promote financial literacy and awareness about derivative products are further fueling the market's growth.

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.