Energy Product Derivatives - Romania

Romania

The nominal value in the Energy Product Derivatives market is projected to reach US$102.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.58% resulting in a projected total amount of US$134.50bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.28 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 408.60k by 2029.

Market

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Currency

Analyst Opinion

The Energy Product Derivatives market in Romania is experiencing a notable increase in activity and interest from investors.

Customer preferences: Investors in Romania are increasingly turning to Energy Product Derivatives as a way to diversify their portfolios and hedge against market volatility. Derivatives offer a way to speculate on price movements without owning the underlying assets, providing flexibility and potential for higher returns.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Romania is the growing demand for renewable energy derivatives. With an increasing focus on sustainability and environmental responsibility, investors are showing interest in derivatives tied to renewable energy sources such as wind and solar power. This trend is in line with global efforts to transition towards cleaner energy sources.

Local special circumstances: Romania's energy sector is undergoing significant changes, with a shift towards renewable energy sources and increased investment in infrastructure. This transition is creating opportunities for investors in Energy Product Derivatives, particularly in the renewable energy segment. Additionally, Romania's strategic location in Eastern Europe makes it a key player in the regional energy market, attracting investors looking to capitalize on the country's energy developments.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Romania is also influenced by broader macroeconomic factors such as government policies, regulatory environment, and global energy trends. As Romania continues to modernize its energy sector and align with European Union directives on renewable energy, the demand for Energy Product Derivatives is expected to grow. Additionally, economic stability, inflation rates, and foreign investment inflows play a role in shaping the dynamics of the derivatives 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.