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There are multiple ways of dealing with this. The first is just to lower the difficulty. The second is to never sleep in-game. Unfortunately, that option's closed to you now. Finally, there's the third method. The problem with this is that to get the maximum benefit from leveling, you'll need to get a +5 bonus to three of your attributes per level, and those attributes need to be the ones that help you the most. Why is this a problem? It's a problem because to get a +5 bonus in the attributes that help you the most, one of the skills that you'll be using a lot needs to be one of the minor skills. The best way to control that is via making a custom character, as you have more control over the skills you'll be using. So if you want to continue with this character, my advice is to bite the metaphorical bullet and lower the difficulty.
Equipment availability is also tied to levels, and the stuff you have is just not fitted to the variety of enemies you're facing. Steel armor, even a full set, is low-tier compared to what you should be using by level 13. Ideally, you should be using Mithril or Orcish armor, depending on your skills. Weapons follow a similar deal, which brings me to that Daedric sword you've got. Ditch it; it's not actually a Daedric weapon, as Daedric weapons NEVER show up before level 20. Instead, what you've got is a Dremora weapon, which are the in-universe equivalent of a cheap knock-off of a Daedric weapon. By level 11, Elven, Dwarven, and Silver weapons start showing up as loot, and silver weapons are available in shops by that time. Invest in one of those weapons, as it'll be a much better choice for you.
Do all this, and your survivability should increase. Now get out there and save the Empire!
If you're just going to melee through the game lower the difficulty slider.
Carry healing potions. Use summoning spells. Use paralyze on touch spells. Use poisons. Alchemy is very powerful. Enchant your weapon for frost/fire/shock damage, soultrap everything you fight and recharge your weapon with Azura's Star. A spellsword/battlemage type character works very well.
You can make life easier by combining melee and magic in battle and it can make a seemingly impossible to beat enemy much easier to handle. Enchant an iron dagger with weakness to fire and make it last for 20+ seconds so you have plenty of time. Then create a fire damage spell and make it as powerful as you're skill level will allow. You can then slash the enemy to apply the weakness spell and quickly follow it up with the fire damage spell. If the target already has a natural weakness to fire it will very quickly drain their health bar. Repeat this with iron daggers and damage spells for frost and shock and keeping it one spell per weapon means you can make it more powerful. I carry a main weapon but also carry all three daggers with me as they are very light and I feel more prepared. Use shield a lot as well to start building up the skill.
This is useful for working out what the resistances/weaknesses are:
https://en.uesp.net/wiki/Oblivion:Creature_Resistances
Use summons and followers to help you out. There are some great follower mods and you can even give them summon spells so when you encounter an enemy your follower summons an extra fighter to help out. Get the Frost Atronach summon as soon as possible because it's a strong summon but is also good for blocking tunnels with it's massive size giving you time to recover with health and magica potions.
I know I'm repeating what has already been said with all of this but I would start a new game and choose custom skills and aim for efficient levelling. Only major skills count towards levelling up and you can increase minor skills as much as you like on each level without increasing the level progress. When I came back to the game a few months ago I ended up restarting at around level 12 because I had messed up my major skill choices.
https://en.uesp.net/wiki/Oblivion:Efficient_Leveling
If you don't painstakingly focus on leveling certain skills to get that +5 bonus (get endurance to 100 ASAP) at the end of each level, you're gonna end up having epic battles with mudcrabs come level 15.
Unfortunately Oblivion has among the worst leveling systems I've ever seen in an RPG, one cannot feasibly follow a niche class to level 10 and beyond unless they powerlevel.
For now, that difficulty slider is your best friend.
Oblivions scaling system is the worst out of all TES Titles
Normal difficulty is generally fine without power gaming (I've never bothered) but there are some obnoxious parts like e.g. main quest finale. Agree the difficulty slider is the solution to ♥♥♥♥♥♥ balancing even while I don't mind Oblivion's system as such.
first of all it is skill that does most damage, not attribute, secondly, game has 100 opportunities to get +++ to all attributes, doomstones, potions, enchanting, spells... redguard for examples starts the game with spell which makes his strength 100.
OP has problems because he didn't stick to 3-4 main skills and went jack of all trades style. by 11 lvl he could had expert lvl in block/blades and could disarm/stun and knockdown people left and right.
^ what people mean with powerleveling is mostly related to endurance. if you level endurance too late, your health suffers really hard. someone who maxes endurance at level 25 for example will never have the same amount of hp as someone who maxed it much earlier. the rest of the attributes you just have to nitpick carefully when to boost according to your needs, so you dont waste attribute boosts because you leveled too many skills. but maxing those late wont have a negative impact