Oman’s oil production rose 10.6% in the first half of 2026, reaching 198.01 million barrels, according to the National Centre for Statistics and Information (NCSI). This increase was supported by higher crude output, as the sultanate continued to benefit from increased production and stable export operations.
Average daily oil production increased by more than 10% to nearly 1.1 million barrels per day (bpd) in the first six months of 2026, up from 989,200 bpd a year earlier. The highest average daily output this year was recorded in May at 1.172 million bpd, while June averaged 1.145 million bpd.
Oil Exports and Prices
Oil exports posted more moderate growth, rising 2.4% year-on-year to 155.22 million barrels during the first half of 2026. The average price of Omani crude climbed 9.4% to $80.9 per barrel during the January-June period, up from $74.0 per barrel a year earlier.
The combination of higher production and stronger oil prices is expected to support Oman’s economic growth this year, providing additional fiscal revenues and offsetting softer growth in some non-oil sectors amid continued geopolitical uncertainty in the region.
Economic Growth Projections
The International Monetary Fund (IMF) said in June that Oman’s economy remains resilient despite ongoing tensions in the Middle East and is expected to record stronger growth in 2026, supported by increased oil and gas production and prudent macroeconomic policies. The IMF projects Oman’s economy to expand by 3.7% in 2026, compared with an estimated 2.4% in 2025.
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As the hydrocarbons sector continues to perform well, it’s likely that Oman will see a positive impact on its overall economic activity, with potential benefits for various sectors, including services and industries related to oil and gas production.
Preliminary NCSI data show that Oman’s real GDP grew by 3% year-on-year in the first quarter of 2026, driven by higher oil and gas production alongside robust expansion across key services sectors. Petroleum activities, which accounted for nearly one-third of the economy, increased by 4.6% in the first quarter.
Sector Performance
Crude oil activities expanded by 4.3%, while natural gas activities recorded stronger growth of 6%. The stronger performance of the hydrocarbons sector is already feeding into broader economic activity, and this trend is expected to continue in the coming months.
The country’s strategic geographical advantage has also contributed to its economic resilience, with oil and gas exports continuing without disruption due to their location outside the Strait of Hormuz. This has enabled Oman to maintain uninterrupted energy exports while benefiting from higher production levels.
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