UPDATE 1-Russia reviewing volatility in energy markets

Moscow is closely watching the situation on the global oil market, Kremlin spokesman Dmitry Peskov told reporters on a conference call on Wednesday.

"There is certainly volatility but the market is the market," Peskov said.

Oil prices lost 7 per cent on Tuesday amid worries about growing supplies and faltering demand.

Benchmark Brent crude regained some ground on Wednesday on prospects that OPEC and non-OPEC producers will agree to cut output at a meeting next month.