[awr-uh-see, ohr-]
the ability to express oneself in and understand spoken language.

1960–65; or(al) + (liter)acy

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World English Dictionary
oracy (ˈɔːrəsɪ)
the capacity to express oneself in and understand speech
[C20: from Latin or-, os mouth, by analogy with literacy]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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Example sentences
While literacy centers on print media, oracy is less fixed and subject to re-telling and re-shaping.
Hence, an oracy to literacy sequence is inherent in our notions about comprehension instruction.
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