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Here's what investors can expect from SIA's longer-dated Brent hedges

SIA hedged 33-39% of fuel requirements until 2022.

For analysts, SIA's longer-dated Brent hedges gives it a competitive edge should fuel prices rise substantially.

According to UOB KayHian, SIA has hedged 33-39% of fuel requirements on Brent at US$53-59/bbl till 2022.

"Brent hedges are at attractive levels and could give SIA an advantage in the event prices escalate. SIA had previously hedged primarily on jet fuel and only up to 24 months due to an illiquid market. SIA’s move will likely be closely watched by its competitors and could potentially lead to similar moves," the brokerage firm said.

It furthered, "SIA indicated that this is in order to lock down a portion of fuel costs at attractive levels on a 5-year rolling basis, but the carrier will continue to add on jet fuel hedges for shorter periods," UOB noted.  

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