May 31 (Reuters) - U.S. energy firms this month cut the

most oil and natural gas operating since August, even as the rig

count remained unchanged this week, 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, held steady at 600 in the week to May 31.

Baker Hughes ( BKR ) said that puts the total rig count down 96

rigs, or 14%, below this time last year.

Baker Hughes ( BKR ) said oil rigs fell by one to 496, while gas

rigs rose by one to 100.

In May, the total oil and gas rig count fell for the third

month in a row and dropped by 13, the most in a month since

August.

The number of oil rigs active in May fell by 10, its

first monthly decline since January and the biggest monthly cut

since September.

The number of gas rigs operating declined by five in

May, the first time it fell for three straight months since July

2020.

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 8% so far in 2024

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

were up about 2% so far in 2024 after plunging by 44% in 2023.

Reflecting the price impact on drilling, U.S. crude oil

production rose in March to its highest this year, while natural

gas production, which hit a peak in December, fell in the month,

data from the Energy Information Administration

showed on Friday.