(For more on the fiscal impasse, see EXT2.)
Oct. 15 (Bloomberg) -- Ultra-low sulfur diesel slid as Senate leaders put on hold bipartisan talks to end the partial government shutdown and prevent a default.
Futures sank 0.5 percent. Senate Majority Leader Harry Reid, a Nevada Democrat, and Minority Leader Mitch McConnell, who had been nearing an agreement, are waiting while the House of Representatives considers its own plan. The government is in day 15 of a partial shutdown, facing an Oct. 17 deadline to raise the debt ceiling or risk default. U.S. equities also fell.
“Uncertainty is bad for markets and now the stock market is weak,” said David Pursell, a managing director at Tudor Pickering Holt & Co. LLC in Houston.
Ultra-low-sulfur diesel for November delivery fell 1.47 cents to settle at $3.017 a gallon on the New York Mercantile Exchange on volume that was 18 percent below the 100-day average as of 4:05 p.m.
The Standard & Poor’s 500 Index dropped 0.7 percent in New York after gaining 3.3 percent in the prior four sessions.
The House and Senate plans would both fund the government through Jan. 15, 2014, and suspend the U.S. debt limit until Feb. 7.
“If the House accepts what the Senate does, I don’t know if glory days are here again but the crisis would receded and the market could go higher,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “As it is, we’re just going to swing back and forth on perceptions.”
ULSD’s premium versus WTI widened 58 cents to $25.50 a barrel. The crack spread over Brent rose 46 cents to $16.75.
Gasoline for November delivery fell 0.7 cent, or 0.3 percent, to settle at $2.6598 a gallon on trading volume that was 25 percent below average.
The motor fuel’s crack spread versus WTI widened 90 cents to $10.50 a barrel. The premium to Brent increased 78 cents to $1.75 a barrel.
Pump prices, averaged nationwide, rose 0.4 cent to $3.347 a gallon, 44 cents below a year ago, Heathrow, Florida-based AAA said today on its website.
--With assistance from Richard Rubin, Kathleen Hunter and Roxana Tiron in Washington. Editors: David Marino, Richard Stubbe