US pre-open: All traders want for Christmas is crude

It seemed US traders couldn't get enough of that black, sticky stuff on Thursday, as oil prices edged higher on Asian and European trade ahead of the bell in New York.

The rises came after the US Energy Information Administration reported lower domestic stockpiles of crude late on Wednesday. It was a surprise to investors, who were expecting a slight increase.

Just after 0900 GMT, oil was continuing its gradual climb away from its historic lows. Brent was up 0.823% to $37.67 per barrel, and West Texas Intermediate remained ahead of its London cousin, up 0.715% to $37.77.

But it had been far from a month of celebration for oil. The global glut saw prices slump around 10% in the US, despite the pre-Christmas rises. Some traders were still proceeding with caution.

"A one-week's drop in crude oil inventory is not a very positive thing for the markets, as fundamentally it is still oversupplied", said Admis trader Alex Poon.

"I don't think this will change the downtrend in crude oil prices."

The OPEC cartel was also increasingly unlikely to cut its production next year, with many picking they'd only do so once US producers start to shutter.

"They need to work with other major producers like Russia. (OPEC) won't cut output alone", Poon commented.

On the stocks front, all three main indices were looking to losses on the futures market after Wednesday's pre-Christmas gains.

The S&P 500 was looking for a 0.2% fall to 2,049.75, while the Dow Jones Industrial Average was in for a 0.1% loss to 17,457. Nasdaq 100 futures shed 0.1% to 4,603.

Software company Salesforce was up 0.23% in premarket trading, after news late on Wednesday that the firm was looking to buy billing service SteelBrick in a deal worth $360m (£241.6m).

Mining firm Freeport-McMoRan was tracking slightly higher after the company's stock finished Wednesday on a 16% high. Overall volumes were thin before the market opening.

Biotechnology company KaloBios revealed it has received a delisting letter from Nasdaq, just days after its infamous CEO Martin Shkreli was arrested by federal agents and charged with securities fraud.

Its independent accounting firm, Marcum, and the interim chief financial officer, Christopher Thorn, had also resigned.

KaloBios stock had been suspended from trading at $23.59 since Shkreli's arrest last week, and the firm had the option to appeal the delisting until Monday 28 December.

An important reading on initial jobless claims for the week to 19 December was due at 1330 GMT, with analysts forecasting a total of 270,000 claims - down from 271,000 in the previous report. Continuing claims was predicted to reduce from 2.238m to 2.188m.

In currencies, the dollar was starting the day weaker against the pound, at £0.6705 - down 0.3%. It was also 0.37% weaker against the euro, to €0.9130, and half a percent down against the yen, to JPY 120.32.