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Refers to the chemical requirements of the olive oil and not the quality and taste. Olive oil must have an acidity level of 1% or less to be considered extra virgin. Because they are the most expensive, it is best to use extra virgin and premium extra virgin for dishes such as salads, in which the oil will not be heated. Heating olive oil will cause it to lose some of its taste so it is best to use lower quality oil for cooking.
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