Mars crude oil prices ease on zinc contamination, sources say
HOUSTON, July 8 (Reuters) - Zinc contamination in the Mars crude oil stream pushed down demand for the flagship U.S. coastal crude, slashing its prices on Tuesday, six traders and an industry source said.
Any challenges to the quality of Mars, a popular offshore grade with U.S. refiners, could further tighten supply along the U.S. Gulf Coast at a time when the lack of heavy Venezuelan barrels has crunched availability.
Mars traded at a 10-cent discount to crude oil at the Cushing storage hub in Oklahoma, easing from a 75-cent premium on Monday, traders and dealers said.
Shell SHEL.L, which operates the Mars platform, did not reply to a request for a comment.
The contamination was likely caused by an additive used on the platform, two sources said. Zinc does not typically occur naturally in crude oil.
Running crude with zinc can lead to corrosion and damage to refining units.
The Mars platform has been producing around 160,000 barrels per day for the last 12 months, according to research firm Energy Aspects. The grade is delivered to Clovelly in Louisiana.
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