Energy Product Derivatives - South America

South America

The nominal value in the Energy Product Derivatives market is projected to reach US$1.70tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.61% resulting in a projected total amount of US$2.13tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.43 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 4.55m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in South America is witnessing a notable surge in activity and interest among investors. Customer preferences in the South American Energy Product Derivatives market are leaning towards more speculative and riskier instruments, driven by a growing appetite for higher returns.

Traders are increasingly looking for opportunities to capitalize on price fluctuations in energy products, leading to a rise in trading volumes in the region. Trends in the market indicate a shift towards increased diversification of portfolios, with investors exploring a wider range of energy derivatives beyond traditional options and futures. This trend is fueled by the desire to hedge against market volatility and maximize returns in a dynamic trading environment.

Local special circumstances, such as regulatory changes and evolving market dynamics, are influencing the Energy Product Derivatives market in South America. The region's unique geopolitical landscape and energy sector developments are shaping the demand for specific types of derivatives, creating opportunities for market participants to capitalize on these trends. Underlying macroeconomic factors, including economic growth, energy demand-supply dynamics, and currency fluctuations, play a significant role in driving the Energy Product Derivatives market in South America.

Investors are closely monitoring these factors to make informed decisions and navigate the market effectively.

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.