HOUSTON, Oct 27 (Reuters): Oil prices settled marginally lower on Monday as OPEC's plans to increase oil output once again outweighed hopes of a trade deal framework between the U.S. and China and renewed U.S. sanctions on Russia.

Brent crude futures were down about 32 cents, or nearly 0.5%, at $65.62 a barrel, while U.S. West Texas Intermediate crude futures closed 19 cents or 0.3% lower at $61.31. Both contracts fell around 1% in early trade.

Eight OPEC+ nations are leaning towards making another modest increase in oil output for December when they meet on Sunday as Saudi Arabia pushes to reclaim market share, four sources familiar with the talks said.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping are due to meet on Thursday to decide on that could pause tougher U.S. tariffs and China's rare-earth export curbs, easing market jitters around a trade war.

U.S. Treasury Secretary Scott Bessent said on Sunday that U.S. and Chinese officials had hashed out a "substantial framework" for a trade deal that could avoid 100% U.S. tariffs on Chinese goods and achieve a deferral of China's rare-earth export controls in trade discussions this week.

"Crude futures are taking a breather from last week's steep rally as President Trump is meeting with Chinese President Xi and staff for trade negotiations on Thursday to hopefully finalize most differences," said Dennis Kissler, senior vice president of trading at BOK Financial.

The United States hit Russia's major oil companies with sanctions on Wednesday, which could hurt Russia's oil exports if enforced and be a positive for crude prices, Kissler added.

"While the futures market has added in additional trade with China and less crude exports from Russia, traders remain cautious as to how much this will actually affect global supplies," Kissler said.

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