The Middle East produced 3407 million barrels of oil at an average daily rate of 9 million barrels in 1966, an increase of 359 million over 1965. The principal production increases were in Iran, Kuwait, the Neutral Zone, Saudi Arabia, Qatar offshore, and Abu Dhabi. New fields were discovered in offshore Iran and in Turkey. Exploration principally was in Iran, Saudi Arabia, the Persian Gulf, and Oman. Individual country reports are presented.