* Oil falls to around $34 a barrel * Japan cuts interest rates almost to zero * GM and Chrysler close in on securing loans - sources * For up-to-the-minute market news, please click on [STXNEWS/US] By Leah Schnurr NEW YORK, Dec 19 (Reuters) - Wall Street looked set to open flat to lower on Friday as oil prices slid below $34 a barrel and struggling automakers General Motors and Chrysler appeared close to snagging a U.S. government lifeline. Japan was the latest country to aggressively cut interest rates to just above zero and announced extra steps to fight the credit crunch that has taken the country into recession. GM (GM.N: Quote, Profile, Research, Stock Buzz) and Chrysler are close to securing emergency loans as part of a government aid package, according to sources familiar with the talks. The aid would, however, require sweeping restructuring. For details see [ID:nSP155126]. Energy companies may come under renewed pressure as the price of oil CLc1 fell to around $34 a barrel, its lowest in almost five years, as the global economic downturn obliterated the effect of OPEC's recent record supply cuts. "The price of oil has got to be the big story today," said Barry Ritholtz, chief market strategist at Fusion IQ in New York, adding: "I don't know if this is just the fact that we overshot to the upside and downside, or is there something legitimate going on and the economy is even worse shape than people think." Cash value futures were lower but above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. S&P 500 futures SPc1 fell 6.80 points. Dow Jones industrial average futures DJc1 were down 41 points, and Nasdaq 100 NDc1 futures lost 9 points. Late on Thursday, Standard & Poor's lowered the minimum value required for inclusion in its S&P 500 index for the second time in nearly three months, underscoring the rapidly shrinking capitalization of U.S. companies. [ID:nN18418474]. Carmakers have been among companies hardest hit by the global slowdown. The prospect of one of the three big Detroit automakers failing has prompted fears over the likely ripple effect through the industry and the wider economy. Sources familiar with the talks said loans to prop up GM and Chrysler for several months could be announced on Friday. Continued...

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