U.S. energy firms this week cut the number of oil and natural gas rigs operating for a fourth week in a row for the first time since mid April, energy services firm Baker Hughes said in its closely followed report on June 28.

The oil and gas rig count, an early indicator of future output, fell by seven to 581 in the week to June 28, the lowest since December 2021. 

Baker Hughes said that puts the total rig count down 93 rigs, or 14%, below this time last year.

Baker Hughes said oil rigs fell six to 479 this week, their lowest since December 2021, while gas rigs fell one to 97, their lowest since 2021.

For the month, the gas rig count fell for the fourth straight month for the first time since July 2020.

For the quarter, the total oil and gas rig count fell for a sixth quarter in a row for the first time since 2020.

The oil and gas rig count dropped about 20% in 2023 after rising by 33% in 2022 and 67% in 2021, due to a decline in oil and gas prices, higher labor and equipment costs from soaring inflation and as companies focused on paying down debt and boosting shareholder returns instead of raising output.

U.S. oil futures were up about 14% so far in 2024 after dropping by 11% in 2023, while U.S. gas futures were up about 4% so far in 2024 after plunging by 44% in 2023.

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