According to the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER), 9.0 million barrels of oil were extracted from offshore Newfoundland and Labrador in March 2026, an increase of 14.2% compared with March 2025 (see Figure 1). The corresponding value of production totalled $1.3 billion, an increase of 54.7%. This marked the highest monthly production level for the province since May 2020, and the highest monthly production value since August 2008.

• Production increased at every oil field in March 2026 compared with March 2025, except for Terra Nova. Hibernia posted its highest monthly production since June 2022 at 2.6 million barrels (+12.2%), while Hebron established a new monthly record at 5.1 million barrels (+12.4%), the highest level since production began in November 2017.
• Brent crude oil prices averaged US$103.13 per barrel in March 2026, a 41.8% increase from US$72.73 per barrel in March 2025, marking the highest monthly average since July 2022.

Through early 2026, global oil market conditions have been dominated by the escalating conflict in the Middle East, with OPEC+ supply policy decisions and evolving U.S. trade measures playing important but largely 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 become the dominant driver of market volatility.
• OPEC+ maintained voluntary production cuts through mid‑2025 but began gradually unwinding them in the second half of the year, most recently approving a combined 206,000 barrels per day increase for each of April and May 2026. However, several key members have struggled to raise production due to the conflict. OPEC+ warned that war-related damage to energy infrastructure could have impacts on oil supply even after hostilities ease. Furthermore, on April 28, the United Arab Emirates announced its intent to leave OPEC, potentially weakening the cartel’s pricing power.
• Brent crude daily spot prices started 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 level since 2008.
• In April, a temporary ceasefire was announced. The Brent crude oil spot price decreased from the early-April high but remained above the $100 mark during most of the month, as the conflict remained unresolved. Subsequent negotiations did not result in an agreement, and the U.S. announced that it would keep Iran under a naval blockade, extending the closure of the Strait of Hormuz into late April.
• Despite the sharp supply disruption, oil price increases were partially tempered by weaker global demand growth and the drawdown of commercial inventories and strategic reserves, which helped cushion the immediate market impact while failing to fully offset elevated geopolitical risk.

The estimated value of Newfoundland and Labrador’s crude oil output is in Canadian dollars; the average Canada-U.S. exchange rate in March 2026 stood at 72.9 cents/U.S. dollar, compared to 69.6 cents/U.S. dollar in March 2025.

On a year-to-date basis, the volume of oil production extracted from offshore Newfoundland and Labrador increased by 29.4% over the January to March 2026 period compared to the same period in 2025. The corresponding value increased by 31.5%.

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