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Line in the sand: OPEC+ defends $80 oil price floor with output cut

Anticipated drop in demand puts budgets at risk for Saudi Arabia and UAE

Many OPEC members rely heavily on revenue from oil exports.   © Reuters

CAIRO/TOKYO -- With Wednesday's decision to cut oil production by 2 million barrels a day, OPEC+ nations aim to keep crude prices from sliding below $80 a barrel, the minimum needed to spare them fiscal trouble.

Oil prices have been sinking as tighter monetary policy in the U.S. and Europe sparks concerns about economic slowdowns and weakens expectations for demand. Benchmark West Texas Intermediate futures fell into the low $76 range on Sept. 26, their lowest since early January.

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