Energy Product Derivatives - Panama

Panama

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$26.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.37% resulting in a projected total amount of US$29.46bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.22 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 124.30k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst Panama's growing financial market landscape, the Energy Product Derivatives market in the country is witnessing notable developments. Customer preferences in Panama are shifting towards more diverse investment options, including Energy Product Derivatives, driven by a desire for portfolio diversification and exposure to different asset classes.

Trends in the market indicate a gradual increase in the trading volume of Energy Product Derivatives, reflecting the growing interest from both institutional and retail investors in Panama. This trend is in line with the global rise in derivatives trading, as investors seek financial instruments for risk management and speculation. Local special circumstances, such as Panama's strategic geographic location and its status as a major transportation and logistics hub, contribute to the development of the Energy Product Derivatives market.

The country's position as a key player in international trade enhances the demand for energy-related financial instruments, attracting investors looking to capitalize on market opportunities. Underlying macroeconomic factors, including Panama's stable economic growth, favorable business environment, and government initiatives to promote financial market development, create a conducive atmosphere for the expansion of the Energy Product Derivatives market. These factors instill confidence in investors and encourage participation in derivative markets, driving the overall growth of the sector in Panama.

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.