Energy Product Derivatives - Kazakhstan

Kazakhstan

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$24.81bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.27% resulting in a projected total amount of US$30.57bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.09 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 308.90k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the evolving landscape of financial markets in Kazakhstan, the Energy Product Derivatives market has been experiencing notable developments. Customer preferences in Kazakhstan are shifting towards more diverse investment options, with a growing interest in Energy Product Derivatives.

Investors are increasingly looking for opportunities to diversify their portfolios and hedge against market volatility, driving the demand for these financial instruments. Trends in the Energy Product Derivatives market in Kazakhstan indicate a gradual but steady growth. The market is witnessing an influx of new participants, including institutional investors and retail traders, attracted by the potential for high returns offered by energy derivatives.

This trend is in line with the global surge in derivative trading activities. Local special circumstances, such as Kazakhstan's position as a key player in the Central Asian energy sector, contribute to the development of the Energy Product Derivatives market in the country. The abundance of energy resources in Kazakhstan, particularly oil and natural gas, creates a conducive environment for the trading of energy derivatives.

Additionally, the government's efforts to promote the development of the financial market further support the growth of derivative products. Underlying macroeconomic factors, such as the overall economic stability of Kazakhstan and the global energy market dynamics, play a significant role in shaping the Energy Product Derivatives market. Economic growth, political stability, and energy price fluctuations influence investor sentiment and participation in derivative markets.

As Kazakhstan continues to strengthen its position in the global energy market, the demand for energy derivatives is expected to grow further.

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.