According to the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER), 7.9 million barrels of oil were produced offshore Newfoundland and Labrador in June 2026, an increase of 18.5% compared with June 2025 (see Figure 1). The value of production totalled nearly $1.0 billion, up 45.5% year over year.

• Production increased at most oilfields in June 2026 compared with one year earlier. White Rose was the only oilfield to record a year-over-year decline in output.
• Production at Terra Nova declined from the previous month due to planned turnaround activities, according to Cenovus Energy.
• Brent crude oil prices averaged US$85 per barrel in June 2026, up 19.5% from US$71 per barrel in June 2025, but down from US$107 per barrel in May 2026.

Global oil markets have remained highly sensitive to developments in the Middle East throughout 2026. While the conflict continued to be the primary source of price volatility, market sentiment increasingly reflects changing expectations around supply disruptions, OPEC+ production policy, and the strength of global demand.

• Concerns over the security of energy supplies intensified following the closure of the Strait of Hormuz in late February. The waterway normally handles a significant share of global seaborne oil trade, and disruptions to tanker traffic and regional energy infrastructure contributed to a sharp increase in crude oil prices and market uncertainty.
• Brent crude spot prices began the year slightly above US$60 per barrel before rising rapidly as the conflict escalated, reaching a peak of US$138 per barrel on April 7, the highest daily level since 2008. Prices remained elevated throughout much of the second quarter as markets assessed the potential duration and severity of supply disruptions.
• Oil prices moderated in June as diplomatic negotiations reduced immediate concerns regarding global supply availability. However, recurring outbreaks of hostilities and uncertainty surrounding a long-term settlement continued to support a geopolitical risk premium in crude oil markets. Prices strengthened again in July as ceasefire arrangements deteriorated and conflict resumed.
• OPEC+ continued the gradual unwinding of voluntary production cuts, approving an additional production increase of 188,000 barrels per day for August 2026. Nevertheless, actual supply growth remained constrained in some member countries due to infrastructure damage, logistical challenges, and transportation bottlenecks associated with the conflict.
• Despite ongoing supply concerns, downward pressure on prices emerged from weaker global demand growth, particularly in major consuming economies, together with increases in non-OPEC production and the release of oil from commercial inventories and strategic reserves. These factors helped moderate price increases but were insufficient to eliminate the elevated level of geopolitical uncertainty reflected in energy markets.

The estimated value of Newfoundland and Labrador’s crude oil output is reported in Canadian dollars; the average Canada-U.S. exchange rate in June 2026 stood at 71.2 cents/U.S. dollar, compared with 73.1 cents/U.S. dollar in June 2025.

On a year-to-date basis, the volume of oil production extracted from offshore Newfoundland and Labrador increased by 24.9% in the January to June 2026 period compared with the same period in 2025. The corresponding value of production increased by 57.4%. This represents the second-highest year-to-date value of production on record for the January to June period, trailing only January to June 2008.

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