Energy Product Derivatives - Singapore

Singapore

The Energy Product Derivatives market market in Singapore is projected to reach a nominal value of US$230.90bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 2.96%, leading to a projected total of US$259.50bn by 2028.
The average price per contract in the Energy Product Derivatives market market is US$0.38 in 2024.
When compared globally, the in the United States achieves the highest nominal value (US$9,915.00bn in 2024) in the Energy Product Derivatives market market.
The number of contracts in the Energy Product Derivatives market market is expected to reach 653.00k by 2028.
Singapore's energy product derivatives market is thriving, attracting global investors seeking exposure to the dynamic commodities market in Asia.

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Analyst Opinion

Amidst the bustling financial landscape of Singapore, the Energy Product Derivatives market is experiencing significant growth and evolution. Customer preferences in the Energy Product Derivatives market in Singapore are shifting towards more diverse and sophisticated trading strategies.

Investors are increasingly looking for innovative financial products to manage risk and maximize returns in a volatile market environment. As a result, there is a growing demand for a wide range of derivative instruments tailored to the energy sector, including futures, options, and swaps. Trends in the market indicate a rising interest in renewable energy derivatives in Singapore.

With the global push towards sustainability and green initiatives, market participants are exploring opportunities in derivatives linked to renewable energy sources such as solar and wind. This trend is driven by both regulatory requirements and investor preferences for environmentally friendly investments. Local special circumstances in Singapore, such as its strategic geographical location and well-established financial infrastructure, contribute to the development of the Energy Product Derivatives market.

As a key trading hub in Asia, Singapore attracts a diverse range of market participants, including multinational corporations, financial institutions, and individual traders. The presence of sophisticated market players fosters innovation and liquidity in the derivatives market. Underlying macroeconomic factors, such as economic growth, government policies, and technological advancements, play a crucial role in shaping the Energy Product Derivatives market in Singapore.

The city-state's strong economic fundamentals and supportive regulatory environment create a conducive ecosystem for derivative trading activities. Additionally, ongoing efforts to promote energy efficiency and sustainability drive the demand for energy derivatives as tools for risk management and investment opportunities.

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.