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

The size of cut in Iran Light crude matched Saudi Arabia's February Arab Light OSP, which was lowered by $2.10 a barrel, a level that was higher than expected by traders.

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.

One trader dismissed the idea that rising tensions between Tehran and the West over its nuclear program 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.

The National Iranian Oil Company (NIOC) 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.

Iran made similar cuts for prices of Iranian Heavy and Forozan crude to Asian buyers.

NIOC made deeper cuts to prices for its customers in Europe compared to the Saudis, setting its February Iran Light price to Northwest Europe at BWAVE minus $2.35 a barrel, down $1.55. Saudi Arabia had lowered its February price Arab light grade to Northwest Europe by $1.40 a barrel.

The European Union has agreed in principle to a ban on Iranian oil, and the United States is trying to get allies such as 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.

The table below shows changes in Iran crude oil prices to Asia. Prices to Asia are differentials to the Oman/Dubai average. Prices for Soroush and Norouz are against the Iranian Heavy OSP.