* Russia, OPEC talk cooperation to stabilise oil market
* Novak says oil output cap to reduce market volatility
* Oil stock overhang still major concern - OPEC's Barkindo
(Adds quotes, details, background)
By Katya Golubkova and Shadia Nasralla
VIENNA, Oct 24 (Reuters) - A short-term cap in oil output
would reduce market volatility, Russian Energy Minister
Alexander Novak said on Monday at a meeting with OPEC
Secretary-General Mohammed Barkindo, as both are looking at ways
to stabilise prices.
Russia is the world's largest oil producer but not a member
of the Organization of the Petroleum Exporting Countries and its
budget has been hit by low oil prices, the same as for many OPEC
nations.
Novak, in Vienna after visiting Saudi Arabia over the
weekend for talks with Saudi Energy Minister Khalid al-Falih,
said sharp falls in the price of crude threatened to trigger an
oil deficit and unpredictable volatility in prices.
"That's why ... (an oil output) freeze or even a cut for a
certain period of time is a right decision for global energy ...
Being a short-term measure, an oil output cap may help to lower
volatility in the market and make it more stable," Novak said.
Last month in Algiers, OPEC agreed modest output cuts that
are due to be set in stone in coming weeks. The goal is to trim
production to a range of 32.50-33.0 million barrels per day
(bpd).
OPEC's Barkindo said before Monday's meeting, which also
included Qatar Energy Minister Mohammed al-Sada, that Russia and
OPEC were "committed to stable and predictable markets".
"While there are signs that the rebalancing of the
fundamentals is under way with overall non-OPEC supply
contracting this year and demand ... at healthy levels, the
large stock overhang continues to be a major concern," Barkindo
said.
Neither Novak nor Barkindo said at which levels Russia could
cap its production, which reached a record-high 11.1 million bpd
in September.
Novak has repeatedly said Russia would prefer to freeze
output rather than cut but would consider specific steps after
OPEC members reach agreement.
(Editing by Dale Hudson and Susan Fenton)