Aug 30 (Reuters) - U.S. 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 late June, 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 two to 583 in the week to Aug. 30, to their

lowest since June.

Baker Hughes ( BKR ) said that puts the total rig count down 48, or

8% below this time last year.

Baker Hughes ( BKR ) said oil rigs were unchanged at 483 this week,

while gas rigs fell by two to 95, their lowest since April 2021.

For the month, the total oil and gas rig count was down

six after rising by eight last month.

Oil rigs were up one in August, while gas rigs were down

six for the month.

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 3% so far in 2024

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

were down about 16% so far in 2024 after plunging by 44% in

2023.

Even though oil prices were up so far this year, the drop in

gas futures for a second year in a row prompted many energy

firms to cut capital spending in 2024. That drop in spending was

expected to reduce gas production in 2024 for the first time

since 2020.

The 26 independent exploration and production (E&P)

companies tracked by U.S. financial services firm TD Cowen said

they planned to cut spending by around 2% in 2024 versus 2023.

That compares with year-over-year spending increases of 27%

in 2023, 40% in 2022 and 4% in 2021.