US pre-open: Futures in the red as crude climbs, Middle East tension persists

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Thursday as oil prices continued to trend upward despite the International Energy Agency's move to release 400m barrels of oil amid supply disruption stemming from the US and Israel's ongoing conflict with Iran. As of 1220 GMT, Dow Jones futures were down 0.51%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.38% and 0.34% weaker, respectively.

The Dow closed 289.24 points lower on Wednesday, with the blue chip index hitting a four-month low as investors digested ongoing fighting in the Middle East, another surge in the price of oil, and the latest inflation report.

Comments from energy secretary Chris Wright were in focus early on Thursday after he confirmed that the US will release 172m barrels of crude from its strategic petroleum reserve, with deliveries expected to take around 120 days. The announcement followed comments from Donald Trump indicating that he would authorise such a move.

Oil prices contnued to push higher despite the announcement and the International Energy Agency's decision to release 400m barrels of oil to counter supply disruption linked to the ongoing conflict in the Middle East. West Texas Intermediate was up 5.34% at $92.04 per barrel, while Brent crude was 6.59% higher at $98.04 a barrel.

These moves come after Trump's claims earlier in the week that the war would end "very soon", a remark that briefly eased pressure on crude prices after surging to nearly $120 a barrel.

On the macro front, January housing starts and building permits figures will be released at 1230 GMT, as will the Department of Labour's weekly jobless claims report, while January goods trade balance data was slated for release at 1330 GMT, and the Federal Government's February budget statement will follow at 1800 GMT.

In the corporate space, Dollar General warned that annual comparable sales would come in below Wall Street expectations, with cost‑conscious shoppers increasingly turning to rival discounters and online retailers for better deals amid ongoing economic uncertainty, while Dick's Sporting Goods posted a stronger‑than‑expected finish to the year, beating Q4 revenue forecasts as sales jumped 59.9% to $6.23bn, and also set out full‑year revenue guidance of $22.25bn - around 2.2% ahead of analysts' estimates.

Still to come, Adobe and Lennar will report their latest quarterly earnings after the close.

Reporting by Iain Gilbert at Sharecast.com