Oil prices slightly decreased on Monday due to OPEC’s decision to boost oil output, overshadowing hopes of a U.S.-China trade deal and new U.S. sanctions on Russia. Brent crude was down 0.4% at $65.68 a barrel, while U.S. West Texas Intermediate crude was 0.2% lower at $61.41. OPEC+ nations are considering a modest output increase for December. U.S. and Chinese officials have made progress on a trade deal framework, potentially avoiding tariffs on Chinese goods. President Trump’s upcoming meeting with Chinese President Xi is crucial for finalizing the deal. The U.S. imposed sanctions on Russia’s major oil companies, impacting oil exports. Uncertainty remains on how global supplies will be affected by increased trade with China and reduced crude exports from Russia. Demand concerns have weighed on the oil market, but renewed U.S. sanctions on Russia and strong U.S. demand have supported prices. OPEC and its allies are reversing production cuts to regain market share, limiting oil price increases. Iraq, OPEC’s biggest overproducer, is negotiating its quota within a capacity of 5.5 million barrels per day. A fire at Iraq’s Zubair oilfield on Sunday did not affect exports. Brent and WTI prices rose last week due to U.S. and EU sanctions on Russia. Russian oil may face challenges entering the market depending on how sanctions are enforced.

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