March 28 (Reuters) - U.S. energy firms this week cut the

number of oil and natural gas rigs operating for a second week

in a row for the first time since mid-January, energy services

firm Baker Hughes ( BKR ) said in its closely followed report on

Thursday.

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

output, fell by three to 621 in the week to March 28.

Baker Hughes ( BKR ) released its North American rig count a day

earlie4r than usual due to the Good Friday holiday.

The total count was down 134 rigs, or 18% below this

time last year, according to the company.

Baker Hughes ( BKR ) said oil rigs fell three to 506 this week,

while gas rigs were unchanged at 112, holding at their lowest

since January 2022.

For the month, the total rig count fell by five, with

the oil count rising by three, and gas down by eight, the

biggest monthly decline since August.

In the first quarter, the total rig count slipped by one

in its fifth quarterly loss in a row. The oil rig count rose by

six, the first quarterly increase since the fourth quarter of

2022, while gas was down by eight.

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 15% so far in 2024

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

meanwhile, were down about 31% so far in 2024 after plunging by

44% in 2023.