Saudi Arabia increases selling prices for oil deliveries to Asia and Europe - Commerzbank

Oil prices also benefited from the price hike by Saudi Arabia, Commerzbank's commodity analyst Carsten Fritsch notes.

Price reduction in the previous month is largely reversed

"The world's largest oil exporter has increased its official selling prices (OSPs) for customers in Asia. These have to pay a price premium of USD 1.5 per barrel for deliveries of Arab Light in February compared to the Oman/Dubai benchmark. This is 60 US cents more than in January, when the OSP was cut to a 4-year low."

"The price increase was therefore somewhat higher than market participants had expected in advance. One reason for this could be that the price of Iranian oil has risen significantly due to the US sanctions. In addition, less oil from Russia is likely to be available due to the Western sanctions against the Russian shadow fleet. As a result, the price reduction in the previous month was largely reversed."

"For customers in Europe, the OSP for Arab Light was raised by $1.3 per barrel compared to Brent. The premium payable for customers in the US compared to ASCI, a basket of sour oil grades, was reduced by 30 US cents to $3.5 per barrel, the lowest level in almost three years. This may be an attempt by Saudi Arabia to remain competitive on the US market."