UPDATE 2-Russian 7 month oil output fall threatens year plan

(Adds more figures, analysts, background)

By Tanya Mosolova

MOSCOW, Aug 4 (Reuters) - Russian oil output edged up by 0.1 percent in July versus June, but was still down year-on-year, casting more doubts over the government's goal to avert the first annual decline in production since 1998.

Poor oil output performance in Russia -- the world's second largest oil exporter after Saudi Arabia -- has become a concern of the government, which relies heavily on export revenues.

It has also been a concern for global oil markets in the past year. Crude prices are close to record highs and the International Energy Agency predicts that supplies will fail to keep up with demand in the long term.

Energy Ministry data showed on Monday oil production stood at 41.361 million tonnes (9.78 million barrels per day) in July compared to 39.999 million tonnes (9.77 million bpd) in June.

Production was down 1.1 percent versus July 2007, when it stood at 9.89 million bpd. In the first seven months of the year, output was 9.76 million bpd, also down by 1 percent versus the same period of last year.

The energy ministry still expects this year's oil output to be at least flat on last year, when it amounted to 9.87 million bpd (491.5 million tonnes).

Last year, production rose by 2.3 percent, a notch up from 2.2 percent in 2006, but much lower than huge spikes in previous years, including a record 11 percent in 2003.