As the 1950s ended, Arab producers began to experience the limitations of the 50:50 sharing of profits agreement. This was because international companies would occasionally cut the posted price of oil in response to market conditions without consulting the producer governments. British Petroleum decided on a 10 per cent cut in 1959, while Standard Oil announced in August 1960 a 7 per cent cut. The then Saudi oil minister, Abdullah al Turayqi, encouraged the principal producer countries to put together a grouping of producer states to protect their interests from the arbitrary actions of the
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