According to the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER), 9.3 million barrels of oil were extracted from offshore Newfoundland and Labrador in May 2026, an increase of 17.1% compared with May 2025 (see Figure 1). The corresponding value of production totalled $1.4 billion, an increase of 92.7%.

• Production increased at most oilfields in May 2026 compared with May 2025. Hibernia posted its highest monthly production since June 2021 at 3.2 million barrels (+32.4%), while Hebron produced near-record levels at 4.8 million barrels (+16.1%).
• Brent crude oil prices averaged US$107 per barrel in May 2026, a 66.2% increase from US$64 per barrel in May 2025, declining from US$117 in April 2026.

Global oil market conditions have been dominated by the ongoing conflict in the Middle East. OPEC+ supply policy decisions and evolving U.S. trade measures also played important but secondary roles in shaping prices and volatility.

• Geopolitical tensions escalated sharply in late February 2026, as U.S.–Israeli strikes on Iran and subsequent Iranian retaliation effectively shut down the Strait of Hormuz, halting most tanker movements and damaging key regional energy infrastructure. The disruption of a corridor that normally carries about 20% of global oil supply has emerged as the dominant driver of market volatility.
• OPEC+ has approved several production increases in recent months, with the latest announcement on June 7, raising production quotas by 188,000 barrels per day for July 2026. However, several key members have struggled to raise production, due to war-related damage and transportation bottlenecks.
• Brent crude daily spot prices began the year slightly over $60 per barrel, increased to $77 on March 2 at the onset of the conflict, then reached a high of $138 on April 7, the highest daily level since July 14, 2008.
• In April, an initial temporary ceasefire was announced. The Brent crude oil spot price remained above the US$100 mark during April and May, as the conflict remained unresolved. In June, a Memorandum of Understanding was reached, maintaining a temporary ceasefire and featuring a 60-day negotiation period for a permanent peace arrangement. While the Strait of Hormuz is technically open, traffic remains limited. The daily spot price declined to nearly US$70 at the end of June.
• Despite the disruption in supply, oil price increases in recent months were partially tempered by weaker growth in global demand and the drawdown of commercial inventories and strategic reserves, which helped cushion the immediate market impact but did not fully offset elevated geopolitical risk.

The estimated value of Newfoundland and Labrador’s crude oil output is reported in Canadian dollars; the average Canada-U.S. exchange rate in May 2026 stood at 72.9 cents/U.S. dollar, compared with 72.2 cents/U.S. dollar in May 2025.

On a year-to-date basis, the volume of oil production extracted from offshore Newfoundland and Labrador increased by 26.0% in the January to May 2026 period compared with the same period in 2025. The corresponding value of production increased by 59.5%. This represents the highest year-to-date value of production on record for the January-May period, surpassing the previous record in January-May 2008.

Further information on the province’s oil and gas industry is available in The Economy 2026 (see Oil and Gas section).