In 1980, the price of oil peaked, and demand started decreasing as a result of recessions in industrialized nations and more efficient oil use, which produced surpluses. This created a worldwide oil glut, with the price of oil dropping from approximately $36 per barrel in 1980 to approximately $14 by 1986. Saudi oil production, which had increased to almost per day during 1980–81, fell 80% to about in 1985. Budgetary deficits developed, and the government drew down its foreign assets.GDP per capita (PPP) shrunk by 0.8% on average during the 1980s, grew 2.1% during the 1990s and 4.4% during the 2000s. (source: GDP (PPP) per capita trend during 1980–2010) Annual imports grew 44% on average during the 1970s, but shrunk 1.9% during the 1980s, grew again 2.4% during the 1990s and 14% during the 2000s.(source: Saudi Arabian imports grew 14% during the 2000s ) As a result of the oil glut and the pressure from declines in production, after 1985 Saudi Arabia started enforcing production quotas more harshly for the OPEC members.
In 1980, the price of oil peaked, and demand started decreasing as a result of recessions in industrialized nations and more efficient oil use, which produced surpluses. This created a worldwide oil glut, with the price of oil dropping from approximately $36 per barrel in 1980 to approximately $14 by 1986. Saudi oil production, which had increased to almost per day during 1980–81, fell 80% to about in 1985. Budgetary deficits developed, and the government drew down its foreign assets.GDP per capita (PPP) shrunk by 0.8% on average during the 1980s, grew 2.1% during the 1990s and 4.4% during the 2000s. (source: GDP (PPP) per capita trend during 1980–2010) Annual imports grew 44% on average during the 1970s but shrunk 1.9% during the 1980s, grew again 2.4% during the 1990s and 14% during the 2000s.(source: Saudi Arabian imports grew 14% during the 2000s ) As a result of the oil glut and the pressure from declines in production, after 1985 Saudi Arabia started enforcing production quotas more harshly for the OPEC members.