The Kuwait Petroleum Corporation (KPC) announced on Wednesday the signing of long-term crude oil supply deals with Shell International Trading Company (SITCO), that will introduce Kuwaiti oil to the European market for the first time in history.
The first deal is a renewal of a previous contract with SITCO, but with doubling the amount of crude oil shipped.
The second deal will put Kuwaiti crude oil in the European market for the first time in KPC’s history.
The new agreements with SITCO come with hopes to establish KPC’s crude in new markets around the world.
Marketing Director of KPC said the first contract will help KPC sales rebound from the 2013 drop.
The second contract, which will introduce Kuwait oil to European and Asian markets, indicates that Kuwait is willing to fight the aggressive competition for market share amid low global demand.
Global oil prices have been declining since June, and have placed pressure on oil producers around the world to cut their prices to compete with the market.
The introduction of Kuwaiti oil to new markets could place some downward pressure on oil prices in Europe and Asia.