Muscat – Oman’s oil production rose 11.9% year-on-year to 270mn barrels in the first eight months of 2026, with higher output helping drive a sharp acceleration in economic growth during the second quarter.

Data released by the National Centre for Statistics and Information (NCSI) showed that total oil production increased from 241.3mn barrels in January-August 2025, as the sultanate continued to raise output while maintaining oil export operations.

Average daily production climbed 10.9% to nearly 1.111mn barrels per day (bpd) during the eight-month period, compared with 1.002mn bpd a year earlier. Production reached its highest monthly average so far this year in May at 1.172mn bpd, while August output averaged 1.168mn bpd.

The increase marks a significant rise from Oman’s average daily production of around 1mn bpd in 2025 and comes as higher hydrocarbon output provides an important boost to the economy.

Oil exports, however, grew at a much slower pace, rising 1.9% to 209mn barrels in the first eight months of 2026 from 205mn barrels in the corresponding period of 2025.

At the same time, the average realised price of Omani crude rose 15.5% to US$83.3 per barrel during January-August, compared with US$72.1 a barrel a year earlier. The highest monthly average selling price of this year was recorded in May at US$124.1 a barrel, while the average stood at US$79.1 per barrel in August.

The combination of higher oil production and stronger crude prices has provided a favourable backdrop for Oman’s economy, with the petroleum sector emerging as the main driver of growth in 2026.

Oman’s real GDP expanded 5.1% year-on-year in Q2 2026, accelerating sharply from 3.0% growth in the first quarter. Preliminary NCSI data showed that GDP at constant prices increased to RO9.889bn in the second quarter of 2026 from RO9.405bn a year earlier.

Petroleum activities accounted for much of the acceleration, with value added from the sector rising 14.7% to RO3.413bn from RO2.976bn a year earlier. Within the sector, crude oil activity increased 15.2%, while natural gas activity grew 11.7%.

By comparison, non-petroleum GDP grew just 0.7% year-on-year in Q2 2026 to RO6.922bn from RO6.877bn a year ago, highlighting the widening contribution of the hydrocarbon sector to overall economic growth.

The International Monetary Fund said in June that Oman’s economy remained resilient despite regional tensions and was expected to record stronger growth in 2026, supported by increased oil and gas production and prudent macroeconomic policies.

The IMF also noted that Oman’s principal export terminals are located outside the Strait of Hormuz, allowing the country to maintain energy exports despite disruptions and heightened geopolitical risks in the region.

The Central Bank of Oman has projected real GDP growth of 4% for 2026, up from 2.4% in 2025, while the IMF has forecast growth of around 3.7%, with higher oil production identified as a key driver.