Stock futures drifted lower Thursday after two days of gains, with a surge in crude oil prices helping to offset the enthusiasm sparked by a hint of an imminent U.S. interest-rate cut.

Oil prices jumped Thursday, rebounding from the previous day’s plunge, after a fire erupted late Wednesday at a pipeline carrying crude oil from Canada to the U.S. Midwest. Pipeline owner Enbridge said four of its Canada-to-U.S. pipelines, with a flow totalling around 1.5 million barrels a day, have been closed following an explosion.

A barrel of light sweet crude for January delivery jumped $2.35 to US$92.96 in premarket trading on the New York Mercantile Exchange, paring its earlier advance of more than US$4 a barrel.

Sears posted a 99% profit decline during the third quarter, leading the retailer to say it was “very disappointed.”

In today’s economic news, Statistics Canada reported that Canada’s current account surplus with the rest of the world decreased $5.3 billion in the third quarter of 2007 to $1 billion, the lowest surplus since the second quarter of 2003.

Separately, StatsCan said prices for manufactured products fell for a sixth consecutive month in October, with price declines in almost all major product groups. Prices for raw materials rose slightly, led by crude oil.

The Canadian dollar opened at US$1.01 this morning, down about two-fifths of a cent from Wednesday’s close.

South of the border, economic reports are due on third-quarter U.S. gross domestic product growth, weekly jobless claims and October new-home sales.

In other news, E*Trade Financial said it is getting a US$2.55 billion cash infusion from Citadel Investment Group, in a bid to restore confidence and liquidity in the discount brokerage.

In other earnings news, TD Bank Financial Group reported fourth-quarter net income of $1.09 billion, up 44% from $762 million in the year-ago period.

Heinz reported a 12% rise in fiscal second-quarter net income.

Computer maker Dell reports after the close of trade.

In overseas trading, the Nikkei 225 climbed 2.4% following the Wall Street rally, while the FTSE 100 eased 0.4% in London.

North American stock markets staged big rallies Wednesday as investors welcomed a signal that U.S. interest rates may be cut.

Federal Reserve vice chairman Donald Kohn told the Council on Foreign Relations that recent financial market turbulence could make it more difficult for businesses and consumers to get loans.

Investors took Kohn’s comments as sign that the U.S. Federal Reserve will cut interest rates at its next meeting.

In Toronto, the S&P/TSX composite index closed up 263.03 points, or 1.97%, at 13,632.15 with all of the TSX’s 10 main groups higher.

The junior S&P/TSX Venture composite index rose 10.73 points, or 0.39%, to 2,732.01.

The Canadian dollar gained almost a full cent to US$1.0141.

In New York, the Dow Jones industrial average was up 331.01 points, or 2.55%, at 13,289.45. The S&P 500 was up 40.79 points, or 2.86%, at 1,469.02. The Nasdaq composite index was up 82.11 points, or 3.18%, at 2,662.91.