By Margot Habiby

June 19 (Bloomberg) -- Oil and natural gas rigs operating in the U.S. gained 2.6 percent, the most since November 2007, according to data published by Baker Hughes Inc., as drilling for both fuels increased amid higher prices.

The increases came as natural gas prices ended the week above $4 per million British thermal units for the first time since mid-May. Crude oil has risen 23 percent in four weeks and 56 percent in 2009.

Rigs exploring for or producing oil or gas increased by 23 to 899, Baker Hughes said today on its Web site. Natural-gas rigs gained for the first time in 30 weeks, increasing by seven, or 1 percent, to 692.

The gas count “may go down for a few more weeks, or it may bounce around near a bottom, but certainly it’s getting to a bottom range,” said Stephen A. Smith, an analyst and president of Stephen Smith Energy Associates of Natchez, Mississippi. “I think we’re going to see a long, flat bottom.”

Gas prices have fallen 28 percent this year amid ample supplies and waning industrial demand because of the recession. The decline has caused drillers to curb output and took the rig count to its lowest since November 2002 last week. It remains down 57 percent from a peak of 1,606 on Sept. 12.

Only Decliner in 2009

Natural gas for July delivery fell 6.1 cents, or 1.5 percent, to settle at $4.032 per million British thermal units at 2:52 p.m. on the New York Mercantile Exchange. Gas is the only energy member of the S&P GSCI Commodity Index to decline this year. Gasoline has returned 92 percent, crude oil 56 percent and heating oil 28 percent.

Gas supplies gained 114 billion cubic feet in the week ended June 12 to 2.557 trillion cubic feet, the Energy Department said yesterday. Analysts expected an increase of 105 billion. Industrial consumption of gas will tumble 8 percent this year, the Energy Department said on June 9 in a monthly report. Overall use is expected to contract 2.2 percent.

The combined oil and gas rig count posted its first increase in 11 weeks and the second since November. It rose to a 22-year high last year, peaking at 2,031 Aug. 29 and Sept. 12.

U.S. oil rigs rose by 13, or 7.1 percent, to 196. The rig count is down from a peak of 442 on Nov. 7. Crude for July delivery fell $1.82, or 2.6 percent, to $69.55 a barrel on the Nymex. Crude has dropped 53 percent from a record $147.27 a barrel in July.

Miscellaneous rigs, which primarily drill for geothermal energy, rose by three to 11.

Texas added the most rigs, increasing by 10 to 330. Louisiana gained four to 137. California and Colorado boosted their rig counts by three each to 24 and 44, respectively. New Mexico and Oklahoma added one rig each to 37 and 77.

Canadian rigs rose by 35, or 32 percent, to 143.

Land rigs increased by 24 to 847. There was one fewer offshore rig in the Gulf of Mexico.

To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net