U.S. energy firms this week cut the number of oil and natural gas rigs operating for the first time in four weeks despite crude prices soaring to five-week highs after OPEC+’s decision to cut production.

The U.S. oil and gas rig count, an early indicator of future output, fell by three to 762 in the week to Oct. 7, the lowest since early September, energy services firm Baker Hughes Co. said in its closely followed report.

Oil rigs fell two to 602 this week, while gas rigs dropped one to 158.

Oil prices on Oct. 7 were trading at five-week highs after an OPEC+ decision this week to make its largest supply cut since 2020.

Energy executives, however, told Reuters that the big OPEC+ cut will not spur new U.S. oil and gas production due to constraints.

U.S. shale production, which recovered quickly after the 2016 price crash, now has more handicaps. Limited equipment and workers, a lack of capital, and pressure from investors to boost returns are dampening output.

In the third quarter, drillers added rigs for an eighth quarter in a row but the addition of 12 rigs was the smallest increase since September 2020.

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