Energy Product Derivatives - Oman

Oman

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$9.94bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.74% resulting in a projected total amount of US$13.14bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.06 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 169.20k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Oman is experiencing a notable increase in trading activities and market participation.

Customer preferences: Market participants in Oman show a growing interest in Energy Product Derivatives, seeking opportunities for portfolio diversification and risk management. With the volatility in global energy markets, investors are turning to derivatives to hedge against price fluctuations and capitalize on market movements.

Trends in the market: Oman's Energy Product Derivatives market is witnessing a trend towards increased liquidity and product innovation. Market players are actively trading a variety of derivative instruments, including futures and options, to take advantage of price differentials and arbitrage opportunities. Additionally, there is a growing demand for more sophisticated derivative products tailored to specific risk profiles and investment strategies.

Local special circumstances: Oman's strategic location as a key player in the global energy market contributes to the development of its Energy Product Derivatives market. The country's significant oil and gas reserves, coupled with its role as a major oil exporter, attract both domestic and international investors to participate in derivative trading activities. Furthermore, Oman's efforts to diversify its economy and attract foreign investment are driving the growth of its derivatives market.

Underlying macroeconomic factors: The macroeconomic landscape in Oman, including factors such as government policies, regulatory environment, and economic stability, plays a crucial role in shaping the Energy Product Derivatives market. Favorable government regulations and initiatives to promote capital market development create a conducive environment for derivative trading. Moreover, Oman's economic growth prospects and its focus on expanding the financial services sector contribute to the increasing sophistication and depth of the Energy Product Derivatives market in the country.

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.