It is difficult to achieve a desired development effect in low permeability oil reservoir. Experiment of stress sensitivity at various fluid pressures was made to test the permeability of the cores in a certain low permeability oil reservoir under the condition of constant confining pressure. The results show that the core permeability decreases gradually with the decrease of the fluid pressure，and then tends to be gently. The lower the permeability of the rock，the stronger the stress sensitivity，and the core permeability cannot recover to the former after the fluid pressure recovers. Its reason is that the stress sensitivity of the low permeability rock is irreversible. Based on radial flow theory，a new productivity equation for oil well was derived considering the effect of stress sensitive on the permeability. The effect of formation pressure on single well productivity was calculated. Under the constant producing differential pressure of 4 MPa，the single well productivity is reduced by 10% to 30% when the formation pressure drops by 5 MPa. The lower the reservoir permeability，the larger the fall. In order to develop the low permeability reservoir with stress sensitivity reasonably and efficiently，reservoir protection should be made in the process of fracturing，perforation and operation. In the process of production，the change of bottomhole pressure should be observed and reasonable producing differential pressure should be maintained in the production.After the oil well production declines obviously，real-time aciding should be made to increase the permeability of the near wellbore area.