US pre-open: Stocks seen touch higher as oil prices rally

US futures pointed to a marginally higher open on Wall Street as oil prices rallied after Russia and Saudi Arabia agreed to do whatever it takes to keep a floor under prices and extend the production freeze.

At 1140 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, but Nasdaq futures were flat.

Meanwhile, oil prices rallied after Saudi Arabia's energy minister Khalid al-Falih and Russian energy minister Alexander Novak said in Beijing that a joint deal to cut crude supplies would be extended until the end of March 2018 from the middle of this year. The 2016 agreement was to cut output by 1.8m barrels a day in the first half of this year and Russia said this latest agreement is expected to be on the same terms.

OPEC ministers are set to hold a meeting at the end of this month in Vienna to make a final decision over the agreement.

West Texas Intermediate was up 2.6% to $49.13 a barrel and Brent crude was 2.5% higher at $52.15.

IG analyst Chris Beauchamp said: "OPEC and its allies have been on manoeuvres once more, repeating their view that more production cuts are necessary in order to avoid another supply glut. This has helped oil prices to move higher once more, but the cartel appears to get diminishing returns each time it announces a reduction in output. They will need to go big on the cuts theme at their May meeting in Vienna, to avoid a sense of disappointment creeping in."

Metals prices were also given a boost as Chinese President Xi Jinping said over the weekend that the 'One Belt, One Road' infrastructure initiative will get financing of $78bn as Beijing looks to strengthen infrastructure and trade links with the rest of the world.

With the focus firmly on oil, investors shrugged off geopolitical tensions after North Korean tested another ballistic missile over the Sea of Japan at the weekend and weaker-than-expected retail sales, industrial production and fixed asset investment data from China.

In corporate news, Google parent Alphabet was a touch higher in pre-market trade after its driverless car division, Waymo, and ride-hailing company Lyft said they would work together to develop autonomous vehicle technology.

On the data front, NY Empire Statement manufacturing is at 1330 BST, while the NAHB housing market index is at 1500 BST.