Russia bombs ISIL oil market in Syria as mourners watch from nearby funeral

New video appears to show a Syrian funeral interrupted by a Russian bombing raid on a nearby fuel market used by ISIL.

The footage shows dark black plumes of smoke rise into the skyline as a group of about 20 men gather beside tombs in a small desert graveyard.

The video, posted to YouTube by Kaes Idlby, appears genuine and corresponds with a confirmed attack on a fuel market in the village of Maaret al-Naasan on Tuesday.

The town in the north of Syria was a known fuel exchange point where diesel is brought in from areas under ISIL control.

Syrian group the Local Coordination Committee said the airstrikes were carried out by Russian warplanes and dozens of people were killed or wounded, Associated Press reports.

Syrian Observatory for Human Rights chief Rami Abdel-Rahman also said he believed Russia was responsible and 16 people had been killed.

"This is part of the campaign against Daesh (ISIL)," Abdel-Rahman said.

Illegally sold oil is a major source of income for ISIL and Russia has increasingly focused its attacks on tankers and oil-production facilities.

The issue of ISIL oil has sparked heated debate on the world stage recently after Russia's defence ministry accused Turkey of trading oil with the group.

Russian Deputy Defence Minister Anatoly Antonov said Turkey was the biggest buyer of  "stolen" ISIL oil, in a statement published earlier this month