"Our European friends and allies need Canada and others to step up. They're telling us they need our help in getting off Russian oil and gas in the short term," Resources Minister Jonathan Wilkinson said in a statement.

"Canada is uniquely positioned to help," he said, adding that Ottawa "will continue working with our international partners to support international energy markets."

Wilkinson was taking part Thursday in a ministerial meeting of the International Energy Agency (IEA) in Paris.

"In response to requests for assistance from allies to address supply shortages due to the conflict in Ukraine, Canadian industry has the capacity to incrementally increase its oil and gas exports in 2022 by up to 300,000 barrels per day with the intention of displacing Russian oil and gas," he said.

Canada is the world's fourth largest oil producer.

The IEA last week urged governments to urgently implement measures to cut global oil consumption following supply fears stemming from Russia's invasion of Ukraine.

The outbreak of war in Ukraine has sent prices for the fuel up sharply and led to major economies, such as the United States and Canada, sanctioning Russia by banning imports of oil.

Earlier, oil prices fell, with Brent North Sea crude, the main international benchmark, dipping under $120 per barrel to trade at around $116.

Prices had gone up in recent days in part because traders believed the EU could soon impose sanctions on Russian oil.