Russia and the powerful oil-producing cartel OPEC played down the threat of a price war although Moscow insisted it was right to boost exports recently because of growing market demand.
Energy Minister Igor Yusufov told reporters after meeting the new secretary general of the Organisation of Petroleum Exporting Countries (OPEC), Alvaro Silva Calderon, that there was no reason to fear a slide in oil prices.
"The rise in oil production in Russia as in other countries in OPEC is aimed
at satisfying growing market demand," Yusufov said.
"There is no reason for concern today given the growth of the US and western
European economies," he added.
Calderon for his part said he believed Moscow, the world's second-largest oil exporter, was cooperating with OPEC to stabilise the market.
"There is no price war. No member of OPEC or non-member could imagine such a
situation. Russia has supported the stabilisation of oil prices," said the OPEC chief, who is also Venezuelan energy minister.
The meeting followed criticism by OPEC of recent export increases by major rival Russia in a bid to boost its market share -- particularly of oil sales
to the United States.
Russia increased exports by 150,000 barrels a day from July 1, despite OPEC's call for Moscow to limit sales in a bid to stabilize global oil prices.
The 11-member cartel, which produces over 30 percent of the world's crude, believes world oil prices remain fragile and is concerned that a new increase in global oil supply would send prices back through the floor.
"Russia behaved in a civilized manner in reducing exports in the first quarter. It was not an easy decision for us but we prolonged it in the second quarter," said Yusufov.
"We abandoned the move judging that there was a balance between OPEC members, non-member producers and consumers," he added.
The Russian minister stressed that Moscow would keep the situation under review and act accordingly.
Moscow decided in mid-May to progressively ease restrictions on its exports,
despite a call by outgoing OPEC Secretary General Ali Rodriguez to non-OPEC producers that it was "imperative" that they maintain their ceilings.
Russia had agreed to cut its exports by 150,000 barrels per day in December in a deal to revive oil prices that had slumped sharply to 17 dollars a barrel amid global economic slowdown fears.
But with prices now back around 25 dollars a barrel, Moscow says it can resume exporting at full capacity.
Analyst Timurbulat Karimov from investment bank Aton said that despite its displeasure, OPEC was trying to find an accomodation with Russia.
"OPEC has every interest in reaching a consensus with Russia which has a major influence on prices. After the US deliveries, Russia is becoming a more important actor," he said.
OPEC is to hold its next ministerial meeting in Osaka, Japan's second city, on September 18, when it is expected to approve only a modest rise in production quotas in response to demands from Algeria and Nigeria.