Energy Product Derivatives - Lebanon

Lebanon

The nominal value in the Energy Product Derivatives market is projected to reach US$15.87bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.20% resulting in a projected total amount of US$19.49bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.24 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 53.97k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Lebanon is witnessing a shift in customer preferences and market trends, influenced by local special circumstances and underlying macroeconomic factors.

Customer preferences: Customers in Lebanon are showing a growing interest in Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market uncertainties. With the volatility in global energy prices, investors are increasingly turning to derivatives to manage risks and potentially increase returns.

Trends in the market: The Energy Product Derivatives market in Lebanon is experiencing a surge in trading volumes, reflecting the heightened interest from both institutional and retail investors. As the market matures, there is a noticeable trend towards more sophisticated derivative products being offered, catering to the evolving needs of investors seeking exposure to energy markets.

Local special circumstances: Lebanon's geopolitical situation and its reliance on energy imports play a significant role in shaping the Energy Product Derivatives market. The country's energy security concerns and fluctuating currency value contribute to a unique market environment, where investors are keen on utilizing derivatives to navigate uncertainties and capitalize on market movements.

Underlying macroeconomic factors: The economic challenges facing Lebanon, including high inflation rates and currency depreciation, are driving investors to seek alternative investment opportunities such as Energy Product Derivatives. The market is also influenced by global energy trends and geopolitical events, which further highlight the importance of derivatives in managing risk exposure and maximizing returns in a volatile market environment.

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.