US drillers cut oil and gas rigs for third straight week

US energy firms this week cut the number of oil and natural gas rigs operating for a third week in a row for the first time since early September, energy services firm Baker Hughes said in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, fell by four to 619 in the week to Oct. 6, the lowest since February 2022.

Baker Hughes said that puts the total rig count down 143, or 19 per cent, below this time last year.

US oil rigs fell five to 497 this week, their lowest since February 2022, while gas rigs rose two to 118.

US oil futures were up about 3 per cent so far this year after gaining about 7 per cent in 2022. US gas futures, meanwhile, have plunged about 26 per cent so far this year after rising about 20 per cent last year.

In the Permian formation in West Texas and eastern New Mexico, the nation's biggest shale oil basin, drillers cut three rigs this week, bringing the total oil and gas count down to 309, the lowest since February 2022, according to Baker Hughes.