Energy Product Derivatives - Myanmar

Myanmar

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$23.67bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.92% resulting in a projected total amount of US$24.79bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.20 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 123.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Myanmar is experiencing a notable shift in recent years.

Customer preferences: Customers in Myanmar are increasingly showing interest in Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The growing awareness of the benefits of financial derivatives is driving this trend.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Myanmar is the rising demand for derivatives linked to energy commodities such as oil and natural gas. This trend is influenced by the country's dependence on imported energy products and the fluctuating global prices of these commodities. As a result, investors are turning to energy derivatives to manage price risks and capitalize on market movements.

Local special circumstances: Myanmar's unique geopolitical position as a key player in the regional energy market is a significant local factor driving the demand for Energy Product Derivatives. The country's strategic location between energy-rich nations and major consumers creates opportunities for investors to participate in derivative contracts linked to regional energy dynamics.

Underlying macroeconomic factors: The macroeconomic environment in Myanmar, characterized by rapid economic growth and increasing foreign direct investment, is also contributing to the development of the Energy Product Derivatives market. As the country continues to open up its economy and attract foreign investors, there is a growing need for sophisticated financial instruments to manage investment risks effectively. This has led to a growing demand for Energy Product Derivatives among institutional and retail investors in Myanmar.

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.