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While OPEC searches for a floor, UAE concludes Patriot purchase

On Wednesday of this past week, OPEC agreed to slash production of crude by 2.2 million barrels a day in a desperate attempt to find a floor. Its action had little effect as prices tumbled to under $34 on Friday, reflecting declining demand and rising inventories. Current market conditions did not preclude the United Arab Emirates from awarding Raytheon a $3.3 billion contract on Thursday to provide advanced Patriot air and missile defense capability. Indeed, the current price of crude may have accelerated the purchase since Gulf governments could soon move to aggressively cut spending in direct response to the crisis.