Energy Product Derivatives - Ukraine

Ukraine

The nominal value in the Energy Product Derivatives market is projected to reach US$122.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.77% resulting in a projected total amount of US$162.00bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.50 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 270.10k by 2029.

Market

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Analyst Opinion

The Energy Product Derivatives market in Ukraine has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the Energy Product Derivatives market in Ukraine are showing a strong inclination towards risk management strategies and hedging tools to protect themselves from price volatility and market uncertainties. They are increasingly looking for innovative financial products to manage their exposure to energy price fluctuations effectively.

Trends in the market: One prominent trend in the Energy Product Derivatives market in Ukraine is the increasing adoption of energy futures and options as essential tools for price discovery and risk management. Market participants are actively engaging in trading these derivatives to hedge against adverse price movements and capitalize on market opportunities. Moreover, there is a growing interest in exchange-traded energy derivatives due to their transparency and liquidity.

Local special circumstances: The Energy Product Derivatives market in Ukraine is uniquely positioned due to the country's significant energy sector and its reliance on imports for certain energy products. This reliance creates a need for sophisticated risk management solutions, driving the demand for energy derivatives in the market. Additionally, the ongoing energy sector reforms and regulatory changes in Ukraine are shaping the landscape for energy derivatives trading.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Ukraine is influenced by various macroeconomic factors, including energy price movements, geopolitical dynamics, regulatory reforms, and market liberalization efforts. The country's energy market integration with the European Union and its efforts to diversify energy sources play a crucial role in shaping the demand and supply dynamics of energy derivatives. Additionally, macroeconomic indicators such as inflation rates, currency exchange rates, and economic growth prospects impact the overall sentiment and participation in the Energy Product Derivatives market in Ukraine.

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.