HOUSTON, July 16 (Reuters) - Oil major Exxon Mobil ( XOM )
bought Mars crude for August delivery, two sources said
on Wednesday, after briefly halting purchases of the flagship
offshore grade due to a zinc contamination issue.
The zinc contamination in the Mars crude oil stream had pushed
Exxon to borrow up to 1 million barrels of crude oil from the
Strategic Petroleum Reserve for its Baton Rouge refinery in
Louisiana.
The start-up of an offshore well caused the zinc
contamination in Mars crude, Chevron ( CVX ) said last week.
Chevron ( CVX ) was actively working to resolve the issue, the
company said on Tuesday.
Exxon and Chevron ( CVX ) did not immediately reply to requests for
comment on Wednesday.
The crude grade was trading at a 30-cent discount to U.S.
crude at the Cushing, Oklahoma, hub, due to the persistent
quality issue. That compared with a $1 premium at the end of
June.