Oil prices rose sharply in early trading on Monday, with Brent crude and West Texas Intermediate (WTI) crude each climbing over a dollar per barrel. The increase comes after the OPEC+ alliance announced it would delay its planned production boost for December by one month in response to weak demand and an increase in supply from non-member countries.

Brent crude futures rose by $1.18, or 1.61%, reaching $82.74 per barrel by 01:21 GMT, while WTI crude increased by $1.20, or 1.73%, to $70.69 per barrel, according to Reuters data.

The OPEC+ group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other allies, had initially planned to increase production by 180,000 barrels per day in December. However, the delay extends the existing cut of 2.2 million barrels per day by an additional month, following a similar postponement in October when prices dropped and demand softened.

A report by ING Bank analysts noted that while the delay "will not significantly impact market fundamentals, it may prompt the market to reconsider OPEC+'s strategy." The decision to delay production, however, surprised some industry watchers who expected OPEC+ to proceed with its planned increase. Analysts have suggested that the move signals a greater-than-expected willingness by OPEC+ to support oil prices.

Prior to this latest decision, OPEC+ members were set to gradually ease their additional voluntary production cuts, totaling 2.2 million barrels per day, starting in December 2024 with gradual increases planned for the following year. Meanwhile, remaining cuts of 3.66 million barrels per day are scheduled to continue through the end of 2025, as per an agreement reached in June.

OPEC+ ministers are scheduled to meet on December 1 to discuss their production strategy for 2025, amid ongoing concerns over market stability and price support.