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Economy

Japan faces 1st current-account deficit in 42 years if oil hits $130

Nikkei estimate reflects diminished export boost from weak yen

A crude-oil pump jack in the U.S. state of Texas. West Texas Intermediate futures temporarily topped $130 in early March.   © Reuters

TOKYO -- Another surge in energy prices could drag Japan's current-account balance into the red on an annual basis for the first time in decades, an estimate by Nikkei shows, as costlier oil imports outweigh the export boost from a weak yen.

The deficit could reach 16 trillion yen ($130 billion) for fiscal 2022 if crude oil bounces back to $130 a barrel and the yen trades at 120 against the dollar.

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