Oct 18 (Reuters) - U.S. energy firms this week cut the

number of oil and natural gas rigs operating for the fourth time

in five weeks, energy services firm Baker Hughes ( BKR ) said in

its closely followed report on Friday.

The oil and gas rig count, an early indicator of future

output, fell by one to 585 in the week to Oct. 18.

Baker Hughes ( BKR ) said that puts the total rig count down 39

rigs, or 6% below this time last year.

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 down about 3% so far in 2024

after dropping by 11% in 2023, while U.S. gas futures

were about 10% lower so far in 2024 after plunging by 44% in

2023.