Exxon is said to halt Mars crude purchases until zinc contamination fixed

Oil major ExxonMobil (NYSE:XOM) has informed its trading counterparts that it will not purchase the Mars crude oil grade until a zinc contamination issue is resolved, Reuters reported, citing sources familiar with the matter.

Zinc contamination in the Mars crude oil stream has pushed down demand and slashed prices for the flagship crude oil produced off the U.S. Gulf coast, the report said.

Mars traded at a 10-cent premium on Thursday to crude oil at the Cushing storage hub in Oklahoma, dealers said.

The Mars crude stream is a mix of oil from various platforms off the coast of Louisiana.

Chevron (CVX), a participant in the production of crude oil included in the Mars stream, stated that it is aware of zinc-related issues affecting the crude and is actively collaborating with the pipeline operator to investigate the source of the problem.

Meanwhile, Shell (SHEL), which operates the primary Mars platform and the associated pipeline system that delivers the crude to buyers, said that testing showed the crude it contributes to the Mars stream met quality standards and did not exhibit any issues, the report said.