Saudi Arabia and allied oil producing countries on Sunday said they would postpone a plan to gradually increase oil output until the end of the year.
The eight members of OPEC+ were due to begin gradually increasing their output from the end of this month, but say they will now begin unwinding the 2.2 million barrels a day cut from January.
The planned gradual increase had already been delayed from October because of falling prices and weak global demand.
While no reason was given for the move, it comes ahead of the US presidential elections on Tuesday.
Analysts say market participants are also waiting to see what Iran’s response may be to recent Israeli attacks.
Oil prices rose by 3 per cent on the news in early trading on Monday.