US drillers cut oil and gas rigs for first time in three weeks

US energy firms last week cut the number of oil and natural gas rigs operating for the first time in three weeks, energy services firm Baker Hughes said in its closely followed report on Friday, reports Reuters.
The oil and gas rig count, an early indicator of future output, fell by seven to 622 in the week to March 8, the lowest since Feb. 16.
Baker Hughes said that puts the total rig count down 124 rigs, or 16.6 per cent, below this time last year.
Baker Hughes said US oil rigs fell two to 504 this week, their lowest since Feb. 23, while gas fell four to 115, their biggest drop since November.
The US oil and gas rig count dropped about 20 per cent in 2023 after rising by 33 per cent in 2022 and 67 per cent in 2021, due to a decline in oil and gas prices, higher labor and equipment costs from soaring inflation and as companies focused more on paying down debt and boosting shareholder returns instead of raising output.
US oil futures were up about 9 per cent so far in 2024 after dropping by 11 per cent in 2023. US gas futures, meanwhile, were down over 27 per cent so far in 2024 after plunging by 44 per cent in 2023.
US natural gas output fell about 7 per cent over the past month as producers scaled back production following a collapse in prices to a 3-1/2-year low.