Saudi Arabia's state owned company Saudi Aramco, in a statement today declared that it will be increasing its crude price for Asian consumers for its light crude cargoes, baffling analysts who gauge the nation to be locked in price war with Iran and Russia. Price for Asian refineries will rise by 60 cents, however the price is still at 80 cents discount to regional Dubai benchmark.

Asia will be key battleground for two arch-rivals, since the region according to 2014 data consumer 60% of Saudi Arabia's total exports and 90% of total Iranian exports. Iran is likely to fight hard to place its additional 500,000 barrels/day of crude, once western sanctions are removed this year.

Saudi Arabia is also locked into battle with Russia to increase its share in Europe, traditional Russian playground. It increased discount for European customers by 60 cents, bringing total discount to $ 4.85/barrel versus benchmark North Sea Brent.

Additional demand from China and India for its light cargoes has been key reason for price hike.

Crude price however, continuing its downfall, with Brent trading at $36.9/barrel at 30 cents premium to WTI and down more than a percent for the day.