Falling oil prices drag down US stock futures

U.S. stock futures fell on Friday as oil prices hit their lowest in a year, while investors were nervous ahead of U.S.-China trade talks at the G20 summit next week.

Volumes are likely to be thin in a shortened trading session on Friday that will see the U.S. stock market close at 1 p.m. ET (1800 GMT).

Benchmark Brent crude prices were down more than 2 per cent on worries of a supply glut, even as oil producers considered cutting production.

Chesapeake Energy Corp shares dropped 3.7 per cent in premarket trading and oil major Exxon Mobil Corp fell 1.4 per cent.

"The post-holiday abbreviated session is looking bleak as the futures point to a weak opening with crude prices tumbling in early pre-market trading," said Peter Cardillo, the chief market economist at Spartan Capital Securities in New York.

At 7:23 a.m. ET, Dow e-minis were down 115 points, or 0.47 per cent. S&P 500 e-minis were down 12 points, or 0.45 per cent and Nasdaq 100 e-minis were down 33.5 points, or 0.51 per cent.

Investors will be focusing on the G20 summit in Buenos Aires, where U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold talks amid a worsening trade dispute between the two countries that has weighed on financial markets and sparked fears of a global slowdown.

The high-stakes meeting comes as the Trump administration shows little sign of backing down in its demands and rhetoric. Chinese Vice Commerce Minister Wang Shouwen said on Friday that trade talks should be equal and mutually beneficial.

Adding to worries, the Wall Street Journal reported that the U.S. government was trying to persuade wireless and internet providers in allied countries to avoid telecommunications equipment from China's Huawei Technologies.

Retail stocks will be in focus as U.S. shoppers hit department stores for Black Friday deals, with a strong economy and rising wages driving a solid start to the holiday selling season.

On the economic front, Markit manufacturing sector PMI data is expected to show a reading of 55.7 in November, in line with prior month's reading. The report is due at 9:45 a.m. ET.