1980s oil glut

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The 1980s oil glut was a significant surplus of crude oil caused by falling demand following the 1970s energy crisis. The world price of oil had peaked in 1980 at over US$35 per barrel (equivalent to $137 per barrel in 2025 dollars, when adjusted for inflation); it fell in 1986 from $27 to below $10 ($79 to $29 in 2025 dollars). The glut began in the early 1980s as a result of slowed economic activity in industrial countries due to the crises of the 1970s, especially in 1973 and 1979, and the energy conservation (including replacing oil in some applications with other fuels) spurred by high fuel prices. The inflation-adjusted real 2004 dollar value of oil fell from an average of $78.2 in 1981 to an average of $26.8 per barrel in 1986. In June 1981, The New York Times proclaimed that an "oil glut" had arrived and Time stated that "the world temporarily floats in a glut of oil". However, The New York Times warned the next week that the word "glut" was misleading, and that temporary surpluses...

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