Energy Product Derivatives - Uruguay

Uruguay

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$48.46bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.97% resulting in a projected total amount of US$64.76bn 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 United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 120.70k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Uruguay, a country known for its agricultural exports and renewable energy initiatives, is also seeing significant developments in its Energy Product Derivatives market.

Customer preferences: Investors and financial institutions in Uruguay are increasingly turning to Energy Product Derivatives as a way to diversify their portfolios and hedge against market volatility. With a growing interest in alternative investments, these derivatives offer an opportunity to speculate on price movements without owning the underlying assets.

Trends in the market: One notable trend in the Energy Product Derivatives market in Uruguay is the increasing demand for renewable energy derivatives. As the country continues to focus on sustainability and clean energy solutions, there is a rising interest in derivatives linked to renewable energy sources such as wind and solar power. This trend reflects a global shift towards environmentally friendly investments and aligns with Uruguay's own renewable energy goals.

Local special circumstances: Uruguay's unique position as a regional leader in renewable energy production influences the Energy Product Derivatives market in the country. The government's strong support for renewable energy projects and the success of its clean energy initiatives create a favorable environment for investors looking to engage in derivatives linked to sustainable energy sources. This special circumstance sets Uruguay apart from other countries in the region and attracts both domestic and foreign investors to the market.

Underlying macroeconomic factors: The stability of Uruguay's economy and its relatively low inflation rate contribute to the growth of the Energy Product Derivatives market. Investors are attracted to the country's economic resilience and transparent regulatory framework, which provide a sense of security when trading in derivatives. Additionally, Uruguay's strategic location and access to regional markets make it an attractive hub for energy trading activities, further driving the development of the derivatives market in the country.

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.