Energy Product Derivatives - Latvia

Latvia

The nominal value in the Energy Product Derivatives market is projected to reach US$15.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.29% resulting in a projected total amount of US$18.58bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.21 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 83.20k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Latvia, a country known for its picturesque landscapes and rich cultural heritage, is also witnessing interesting developments in its Energy Product Derivatives market. Customer preferences in Latvia are shifting towards more diverse and sophisticated investment options, including Energy Product Derivatives.

Investors are increasingly looking for ways to hedge against volatility in energy prices and capitalize on market fluctuations through derivative instruments. Trends in the Energy Product Derivatives market in Latvia are reflecting a growing interest in renewable energy derivatives, driven by the country's commitment to sustainability and green energy initiatives. As the global focus on environmental conservation increases, the demand for renewable energy derivatives is on the rise, providing new opportunities for market participants in Latvia.

Local special circumstances in Latvia, such as its geographical location and energy dependency, play a significant role in shaping the Energy Product Derivatives market. The country's strategic position in the Baltic region and its reliance on energy imports create unique challenges and opportunities for derivative trading, influencing market dynamics in the region. Underlying macroeconomic factors, such as regulatory reforms and economic growth projections, also impact the Energy Product Derivatives market in Latvia.

As the country continues to align its energy policies with European Union directives and invest in renewable energy infrastructure, the derivatives market is expected to evolve in response to these changes, offering a dynamic environment for investors and traders alike.

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.