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Thanks for filling in the blanks. Bearings do not usually fail hard and suddenly dbut the only way to know is to remove the engine and take it apart. Did you check for play at the front bearing of the balance shaft? The sudden drop, as confirmed by a second gauge, is suspicious. You might have a flaky relief valve, but generally that only limits maximum pressure and should not be responsible for an across-the-board drop. However, a bad pump could.
Your pressures sound marginally satisfactory by the rule-of=thumb. If there is a SAAB spec for various engine speeds I do not know of it.
The suggestion to restore the warning light is not bad. I would put a brass tee at the oil pressure port and install the switch (you can get one that closes to turn on the light at 5-10 PSI, the exact 7PSI mentioned is not critical), so you can have both gauge and light.
Given your whole story, especially 40PSI cold at 4000, I am suspicious that something may have gone wrong with the oil pump. A possibility is that the pickup screen is jammed, and the manual has specs for measuring pump components once it is disassembled. That would be relatively cheap to try as an experiment, but you still have to pull the engine and the oil pan. At which time you can easily inspect the rod and main bearings (but not the cam or balance bearings without further disassembly). If you go that route, I'd certainly replace the oil pump regardless of inspection results. As long as there is no further pressure drop you could possibly be OK for a long time, but my crystal ball's in the shop.
posted by 74.93.22...
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