Oil prices settled slightly lower on Monday due to OPEC’s plan to increase output, overshadowing hopes of a U.S.-China trade deal and U.S. sanctions on Russia. Brent crude was down 0.5% at $65.62/barrel, while U.S. West Texas Intermediate closed 0.3% lower at $61.31. Both fell around 1% initially.

Eight OPEC+ nations are considering a modest oil output increase for December to reclaim market share, sources say. Trump and Xi are set to meet to discuss a trade deal framework. U.S. Treasury Secretary mentioned progress in trade discussions to avoid tariffs on Chinese goods and rare-earth export controls.

Crude futures paused amid trade negotiation hopes between the U.S. and China, with potential for less Russian oil exports due to U.S. sanctions. Concerns over demand and OPEC’s decision to increase production have weighed on oil prices. Renewed U.S. sanctions on Russia have helped support oil prices.

Iraq, OPEC’s top overproducer, is negotiating its quota within its capacity of 5.5 million barrels per day. A fire at Iraq’s Zubair oilfield did not impact exports. Last week, Brent and WTI rose due to U.S. and EU sanctions on Russia, posing challenges for Russian oil to enter the market.

Read more at Yahoo Finance: Oil settles lower as OPEC plans to increase oil output