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2 years ago

Why was a severe downturn in oil prices during the early '80s detrimental to the Soviet economy?

History

2 answers:

insens350 [35]2 years ago

6 0

It was a oil-exporting nation and it lost too much of an important resource, thus crippling the economy.

VMariaS [17]2 years ago

6 0

The "Oil Glut" of the 1980s was a surplus of oil supply caused by the reduced demand due to the 1970s Energy Crisis. After reaching a historical peak of $35 in 1980, the price of the oil barrel would sharply fall from $27 to less than $10 in 1986 due to the excess in the offer. This would severely affect the economic wealth of the Oil producing countries, such as the Soviet Union. This event would be one of the main factors that contributed to an eventual fall of the Soviet regime and dissolution of the country in 1991.

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