Energy companies fell after a week of gains as oil prices pushed higher on the return of seasonally higher demand, renewed confrontation between Israel and Hezbollah, and the arrival of hurricane season.

The number of rigs drilling for oil in the U.S. fell this week by three to 485 in a fourth consecutive week of declines and was down by 61 from a year ago, oil services company Baker Hughes reported.

"Slipping oil rigs in the U.S. and the Permian raise concerns over the production outlook of the world's marginal short-term producer," analysts at Goldman Sachs said in report, calling the oil rig count "historically a good indicator of future oil production growth." Goldman expects Permian output growth to slow to 270,000 barrels a day in 2026 from 520,000 barrels a day last year but will still be robust thanks to efficiency gains and a shift to newer and more productive wells.

Rigs directed at natural gas were unchanged this week at 98, down 32 from a year ago, Baker Hughes reported.

Write to Patrick Sullivan at

(END) Dow Jones Newswires

06-21-24 1641ET