Norway’s Oil Output Falls Nearly 200,000 Bpd as Gulf Supply Crisis Drags On

Norway's crude oil production decreased by nearly 195,000 barrels per day in July 2025, according to preliminary figures from the Norwegian Offshore Directorate. Total liquids production fell by around 197,000 barrels per day, or 9.1%, compared to the same period last year. The decline is attributed to the ongoing supply crisis in the Gulf region, where 8.3 million barrels per day of production remained shut in due to restricted traffic through the Strait of Hormuz.

While global supply increased, it still fell short by 6.3 million barrels per day compared to the previous year. The market is now increasingly relying on production from outside the Persian Gulf, particularly barrels that can bypass geopolitically exposed chokepoints. Despite the decline, Norwegian production remains close to Europe's refining system, which helps mitigate the impact on the global market.

The market will closely monitor Norway's next production report to determine if the weakness was temporary or indicative of a structural decline.