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Energy Product Derivatives - Iceland

Iceland
  • The nominal value in the Energy Product Derivatives market is projected to reach US$19.38bn in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2029) of 5.94% resulting in a projected total amount of US$25.87bn by 2029.
  • The average price per contract in the Energy Product Derivatives market amounts to US$0.35 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 59.36k by 2029.

Definition:

The Energy Product Derivatives market refers to derivatives of energy products such as crude oil or coal. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of crude oil, an investor could own a derivative of crude oil). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular energy product derivatives are crude oil, coal, or natural gas.

In-Scope

  • Energy Product Derivatives, e.g. natural gas, crude oil

Out-Of-Scope

  • Physical energy products
Energy Product Derivatives: market data & analysis - Cover

Market Insights report

Energy Product Derivatives: market data & analysis

Study Details

    Value Development

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Volume

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Energy Product Derivatives market in Iceland is experiencing notable developments and trends. Customer preferences in Iceland's Energy Product Derivatives market are influenced by a strong focus on renewable energy sources and sustainability.

    Customers in Iceland tend to show a preference for derivatives related to clean energy, reflecting the country's significant use of geothermal and hydroelectric power. Trends in the Energy Product Derivatives market in Iceland are shaped by the country's unique energy landscape. With a high reliance on renewable energy sources, there is a growing demand for derivatives linked to these specific assets.

    Additionally, Iceland's strategic location between Europe and North America positions it as a potential hub for energy trading, leading to an increase in derivative products tailored to international markets. Local special circumstances in Iceland play a crucial role in the Energy Product Derivatives market. The country's abundant renewable energy resources, coupled with a small population, create a dynamic environment for innovative derivative products.

    Furthermore, Iceland's commitment to sustainability and green initiatives drives the development of new derivatives that align with these values. Underlying macroeconomic factors, such as government policies supporting renewable energy development and the country's energy independence, contribute to the growth of the Energy Product Derivatives market in Iceland. These factors provide a stable foundation for market expansion and attract both domestic and international investors looking to participate in Iceland's energy sector.

    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.

    Financial

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    Energy Product Derivatives: market data & analysis - BackgroundEnergy Product Derivatives: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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