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DPNY,
Interestingly, you have given quite a bit of information. Elastomeric seals increase in durometer in cold temperatures. Add to this the tendency for seals to harden and lose shape in high temperature enviroments with age, you've got a real knock down blow out for the little oil pump supply tube o-ring.
You should of course verify the oil pressure with a mechanical instrument connected to the oil pressure port, but if the pressure is low it's a good bet the ring has collapsed. This is not an uncommon problem.
Because you stated that you are a novice, but not so much so that you ignored the lamp, because you alluded to an oil pump belt, I would certainly seek out an Independant Volvo mechanic to assist you in the seal replacement. Replacing the oil pump itself is also good insurance.
I myself find it easiest to remove the engine and dismantle it on the stand, to replace the oil pump and seals. Some prefer the nightmare of supporting the engine from above, and removing the engine support and front suspension, then removing the oil pan and pump in situ.
Goatman
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