Iran cuts February official crude selling prices to Asia

Iran has lowered its official selling prices (OSPs) for February-loading crude to Asia from the previous month, matching the declines in benchmark Saudi Arabia prices, traders said on Wednesday.

One trader dismissed the idea that rising tensions between Tehran and the West over its nuclear programme were a factor for Iran in lowering its OSPs.

"I do not think they would lower prices due to sanctions, because that would lead to lower revenues," he said.

Iran cut its Iran Light prices to Asia by $2.10 a barrel from January to $2.26 a barrel premium to Oman/Dubai, the traders said.

The size of Iran Light's decline matched Saudi Arabia's February Arab Light OSP, which was lowered by $2.10 a barrel.

Iran made similar cuts for prices of Iranian Heavy and Forozan.

The European Union has agreed in principle to a ban on Iranian oil, and the United States is trying to get allies Japan and South Korea to agree to cut purchases.

Tensions in the Strait of Hormuz - the world's most important oil shipping lane - have risen in recent weeks after Iran threatened to block the narrow strip of water, through which producers Saudi Arabia, Iran, Iraq and the UAE rely to supply customers around the world.

Iran discusses its crude OSPs quarterly with term lifters and regularly fine-tunes the spread between its crudes and Saudi Arabia's grades during these negotiations.