Energy Product Derivatives - United States

United States

The nominal value in the Energy Product Derivatives market is projected to reach €24.96tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.70% resulting in a projected total amount of €27.16tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to €0.06 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€24,960.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 418.70m by 2029.

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Analyst Opinion

The Energy Product Derivatives market in United States is a dynamic and evolving sector that reflects the country's significant role in global energy markets.

Customer preferences: Customers in the United States show a strong inclination towards energy product derivatives as a means of hedging against price volatility and managing risk in the energy market. The diverse range of participants, including institutional investors, energy companies, and speculators, contribute to the liquidity and depth of the market.

Trends in the market: One notable trend in the Energy Product Derivatives market in the United States is the increasing use of electronic trading platforms, which have streamlined the trading process and enhanced market efficiency. Additionally, there is a growing interest in more complex derivative products, such as options and swaps, as market participants seek tailored solutions to their risk management needs.

Local special circumstances: The United States benefits from a well-developed financial infrastructure and regulatory framework that supports the growth of the Energy Product Derivatives market. The presence of major energy exchanges in key financial centers like New York and Chicago further bolsters the market ecosystem, providing market participants with access to a wide range of derivative products.

Underlying macroeconomic factors: Macroeconomic factors such as geopolitical events, technological advancements in the energy sector, and government policies play a significant role in shaping the Energy Product Derivatives market in the United States. For instance, shifts in energy production and consumption patterns, driven by factors like renewable energy adoption and regulatory changes, can have a profound impact on derivative pricing and market dynamics.

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.