US energy firms this week cut the number of rigs operating for the first time in six weeks, energy services firm Baker Hughes said in its closely followed report on Friday.
The total oil and gas rig count, an early indicator of future output, fell by one to 598 in the week to October 2, the lowest since mid-September.
Baker Hughes said the total rig count was still up 49 rigs, or 9%, from this time last year.
Baker Hughes said oil rigs rose by one to 456 this week, their highest since May 2025, while gas rigs fell by two to 133, their lowest since mid-September, and other miscellaneous rigs held at nine.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower US oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
But now spot US West Texas Intermediate (WTI) crude prices are expected to rise in 2026 for the first time in four years due to supply disruptions from the Iran war. The US Energy Information Administration (EIA) projected that crude output will rise from a record 13.7 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026.
On the gas side, EIA projected that output will jump from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 111.7 bcfd in 2026 as demand for the fuel rises to produce electricity for power-hungry data centers and liquefied natural gas (LNG) for export.
(Reporting by Scott DiSavino; Editing by David Gregorio)