US drillers cut oil and gas rigs for eighth week

US energy firms this week cut the number of active oil and natural gas rigs for an eighth week in a row, 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 production, fell by one to 631 in the week to Sept. 1, its lowest since February 2022.

US crude oil production increased again in June and is nearing the record high set before the pandemic, while gas output fell from its record high in May, despite peaking in top gas-producing states, Texas and Pennsylvania, latest government data showed this week.

The pace of growth, however, is slowing as the industry responds to weaker prices.

After oil prices soared in June 2022 following Russia's invasion of Ukraine, the number of oil rigs climbed until late November, but has since fallen about 18 per cent, while the gas rig count has dropped about 30 per cent since its last peak in March.