Energy Product Derivatives - Canada

Canada

The nominal value in the Energy Product Derivatives market is projected to reach €583.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.81% resulting in a projected total amount of €638.10bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to €1.28 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 493.60k by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Canada is experiencing a significant increase in trading activities and market participation.

Customer preferences: Traders in the Energy Product Derivatives market in Canada are showing a growing interest in financial instruments related to energy products. This preference is largely driven by the volatility in energy prices and the potential for significant returns within a short period.

Trends in the market: One notable trend in the Canadian Energy Product Derivatives market is the shift towards more sophisticated trading strategies and risk management techniques. As market participants become more experienced and knowledgeable, they are increasingly utilizing complex derivatives to hedge their positions and speculate on price movements.

Local special circumstances: Canada's position as a major energy producer and exporter plays a crucial role in shaping the Energy Product Derivatives market in the country. The close ties between the energy sector and the financial markets create unique opportunities for investors and traders to capitalize on the fluctuations in energy prices.

Underlying macroeconomic factors: The overall economic stability and regulatory environment in Canada are favorable for the development of the Energy Product Derivatives market. With a well-established financial infrastructure and a robust energy sector, Canada provides a conducive environment for market growth and innovation. Additionally, the country's strategic location and strong trade relationships contribute to the attractiveness of the Energy Product Derivatives market for both domestic and international investors.

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.