*

Group likely to agree a 137,000 bpd hike, sources say

*

OPEC+ has slowed pace of increases amid glut predictions

*

New sanctions make it difficult for Russia to raise output

*

Sunday meeting scheduled for 1600 GMT

By Olesya Astakhova, Ahmad Ghaddar and Alex Lawler

LONDON/MOSCOW, Nov 2 (Reuters) - OPEC+ is set to agree

on Sunday on another modest increase in oil output targets,

three sources familiar with the talks said, as the producers'

group moderates plans to regain market share due to rising

supply glut fears.

OPEC+ has raised output targets by more than 2.7 million

barrels per day - about 2.5% of global supply - since April but

slowed the pace in October and November from larger increases

amid predictions of a looming oversupply.

New Western sanctions on OPEC+ member Russia are adding to

challenges in the discussions as Moscow may struggle to further

raise output after the United States and Great Britain imposed

new measures on top producers Rosneft and Lukoil.

Eight OPEC+ members - Saudi Arabia, Russia, the United

Arab Emirates, Iraq, Kuwait, Oman, Kazakhstan and Algeria - are

set to agree on Sunday to increase December output targets by

137,000 barrels per day (bpd), the three sources said.

They declined to be named because they are not allowed to

speak to media. A fourth source said a pause in output hikes was

also possible.

Oil prices fell to a five-month low of about $60 a

barrel on October 20 on concerns that a glut was building, but

have since recovered to about $65 a barrel on Russian sanctions

and optimism over U.S. talks with trade partners.

Analysts including RBC, Rystad, Commerzbank and SEB have

said this week they expect OPEC+ to raise targets by 137,000 bpd

for December.

The Sunday meeting is scheduled for 1600 GMT, the three

sources said.

OPEC+ had been reducing output for several years until April

and cuts had peaked in March, amounting to 5.85 million bpd in

total. The cuts were made up of three elements: voluntary cuts

of 2.2 million bpd, 1.65 million bpd by eight members and a

further 2 million bpd by the whole group.

The group has been unwinding voluntary cuts while the last

element of the cuts for the whole group is meant to stay in

place until the end of 2026.

(Additional reporting by Maha El Dahan; Writing by Dmitry

Zhdannikov; Editing by Hugh Lawson)