Muscat – Oman’s oil production rose by 9.7% year-on-year during the first five months of 2026, reflecting higher crude output as the sultanate continues to benefit from increased production levels and stable export operations.

According to data released by the National Centre for Statistics and Information (NCSI), total oil production reached 163.6mn barrels during the January-May period, up from 149.1mn barrels in the corresponding period of 2025.

Average daily oil production increased by nearly 10% to 1.08mn barrels per day during the first five months of 2026, compared with 987,600 barrels per day a year earlier. Highest average daily output was recorded in May at 1.17mn barrels per day.

Oman’s oil exports recorded more modest growth, rising 2.7% to 129.5mn barrels during the first five months of the year, compared with 126.1mn barrels in the same period of 2025.

Meanwhile, the average price of Omani crude increased by 1.3% year-on-year to US$76.2 per barrel during the January-May period, up from US$75.2 per barrel in the corresponding period last year. NCSI data showed that the highest monthly average selling price was recorded in May at US$124.1 per barrel.

The increase in oil production and higher prices are expected to provide a significant boost to Oman’s economic growth this year, helping offset slower expansion in parts of the non-oil economy amid continued geopolitical tensions in the region.

The International Monetary Fund (IMF) said this month that Oman’s economy remains resilient despite the ongoing conflict in the Middle East and is expected to record stronger growth in 2026, supported by higher hydrocarbon production and prudent macroeconomic policies.

The IMF noted that Oman’s oil and natural gas infrastructure has remained largely unaffected by the regional conflict, with the country’s key export terminals located outside the Strait of Hormuz. This has enabled the sultanate to maintain uninterrupted energy exports while increasing production amid regional supply disruptions.

The Fund projects Oman’s economy to grow by around 3.7% in 2026, up from an estimated 2.4% in 2025.

Earlier, S&P Global Ratings also highlighted Oman’s strategic geographical advantage, noting that the country’s oil and gas exports have continued without disruption because they do not rely on transit through the Strait of Hormuz.

The stronger hydrocarbon sector is already contributing to economic activity. Preliminary NCSI data show that Oman’s real GDP expanded by 3% year-on-year in the first quarter of 2026, driven by higher oil and gas production alongside robust growth across key services sectors.

Petroleum activities, which accounted for nearly one-third of the economy, increased by 4.6% during the first quarter. Crude oil activities grew by 4.3%, while natural gas activities posted stronger growth of 6%.