Energy Product Derivatives - Morocco

Morocco

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$530.30m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.23% resulting in a projected total amount of US$684.40m 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 224.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Morocco is experiencing a notable shift in dynamics, driven by various factors influencing customer preferences, market trends, local circumstances, and underlying macroeconomic conditions.

Customer preferences: Customers in Morocco are increasingly showing interest in Energy Product Derivatives as a way to hedge against price volatility and manage risk in the energy markets. This growing demand is partly fueled by the need for financial instruments that offer protection against fluctuations in energy prices, especially in a market where energy plays a crucial role in the economy.

Trends in the market: The Energy Product Derivatives market in Morocco is witnessing a trend towards more diverse and sophisticated derivative products. Market participants are exploring innovative financial instruments that allow them to capitalize on price movements in energy products without directly owning physical commodities. This trend is indicative of a maturing market that is adapting to meet the evolving needs of investors and hedgers.

Local special circumstances: Morocco's strategic geographic location and its increasing focus on renewable energy sources are shaping the Energy Product Derivatives market in unique ways. As the country invests in renewable energy projects and aims to reduce its dependence on traditional fossil fuels, there is a growing interest in derivatives linked to alternative energy sources. This presents opportunities for market participants to engage in new types of derivative contracts tailored to the country's energy landscape.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Morocco is also influenced by broader macroeconomic factors such as economic growth, government policies, and global energy trends. Economic stability and regulatory reforms play a crucial role in shaping the investment climate for derivatives trading, while global energy market dynamics impact the overall sentiment and direction of the market in Morocco. As the country continues to navigate these macroeconomic factors, the Energy Product Derivatives market is expected to evolve further to meet the changing needs of investors and hedgers.

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.