Saudi Aramcohas raised its official selling prices (OSPs) for crude oil for May sales to Asia in a move that reflects the higher margins being made by refiners in the Asian markets.

Aramco raised its OSP, the price its large volume customer pay, by 20-80 cents a barrel less than the regional discounts as the threat of Latin American suppliers affecting market share diminished.

The move was interpreted by some that increased demand due to lower prices could be a sign that oil prices are on the verge of recovery. However, there is still the fear that Iranian crude could flood the market as soon as the sanctions imposed due to its nuclear programme are lifted.