An oil installation stands in Saudi Arabia's northeastern Gulf port of Jubail. Bilal Qabalan/AFP/Getty Images
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LONDON: Saudi Arabia has a response to the global surplus of oil: Raise output to near-record levels and then pump even more.Oil plunged to a six-year low near $45 a barrel in January, six weeks after the Saudis overcame opposition within the group to keep up output despite surging U.S. shale supplies.The biggest member in the Organization of Petroleum Exporting Countries boosted output to 10.1 million barrels a day in March, close to an all-time peak, the International Energy Agency reported on April 15 . Saudi Oil Minister Ali al-Naimi, who has stressed his country won't cede market share to higher-cost producers, said in the capital Riyadh on April 7 that production was at 10.3 million barrels and would remain close to that.OPEC should trim "at least 5 percent" from its output target of 30 million barrels a day, Iranian Oil Minister Bijan Namdar Zanganeh said on April 14 .With no group accord to restrain output, Saudi Arabia will choose to tap its spare capacity, according to UBS.
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