Reuter cited Mr Sergei Shmatko Energy Minister of Russia as saying that Russia fresh from a record month of oil production will be able to invest in new fields at current crude prices and makes no apologies to OPEC for refusing to rein in output.

Mr Shmatko said "We never had any obligations. When we were communicating, we never promised anything. To say that we do not abide by the rules is not correct."

Mr Shmatko said "One always wants something better. One can always say that at a higher price, some projects will be more profitable, but today the price of oil does not set any limits for the oil industry's development."

He said that Russian oil producers would be able to avail themselves of a zero duty on exports from 13 oilfields in East Siberia by the end of September. No time limit has been set for the tax breaks. He added that Russia would also regulate its oil sector should crude prices plunge again. If there are negative dynamics in the price of oil we will regulate.

Russian oil output hit a record monthly high in August, nearing 10 million barrels per day as the world's second largest crude exporter launched a major new field in the Arctic and grabbed more market share from OPEC.

Mr Abdullah al-Badri OPEC Secretary General speaking after an OPEC meeting in Vienna said the lack of any tangible cooperation from non member Russia in the group's output cuts not encouraging.

(Source from Reuters)