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Libyan Opposition prepares to export oil as rebels push forward

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Bloomberg Berlin/ London

Libyan rebels and forces loyal to Muammar Gaddafi battled to a standstill in the central port of Brega as the opposition prepared to export crude oil for the first time since the conflict began six weeks ago.

Rebels moved to the outskirts of the oil port after running battles between the two sides late yesterday, the Associated Press reported. The BBC said rebel forces were being pushed back from the outskirts of Brega by loyalists.

The oil tanker Equator, which can carry 1 million barrels, was about eight miles (13 kilometers) off Libya’s eastern coast near the rebel-held port of Tobruk, according to AISLive Ltd ship- tracking data compiled by Bloomberg.

 

Libya’s conflict, which began with an uprising aimed at ending Gaddafi’s 42-year rule, has threatened to grind to a stalemate and complicate a North Atlantic Treaty Organisation (Nato)-led air campaign that’s targeted Gaddafi’s forces. European governments have repeatedly said the 68-year-old leader must go and rejected diplomatic overtures from the Libyan government, which yesterday called for an “international dialogue” to resolve the conflict.

The regime in Tripoli would offer elections, though any resolution wouldn’t involve an exit by Gaddafi in the near future, government spokesman Moussa Ibrahim said yesterday at a press conference broadcast on Sky News. Gaddafi’s future must be decided by the Libyan people since he has “symbolic significance” for the nation, Ibrahim said.

Oil falls
Crude fell from its highest in more than 30 months as forecasts of growing inventories in US and an interest-rate increase in China fanned concern that demand in the world’s two biggest oil consumers may slow. Oil for May delivery on the New York Mercantile Exchange fell as much as 97 cents to $107.50 a barrel and was at $107.77 at 11.29 am London time.

The European Union’s embargo on Libyan oil and gas exports only targets the Gaddafi regime, Michael Mann, spokesman for European Union foreign policy chief Catherine Ashton, told reporters in Brussels today. Mann said the 27-nation bloc had “no issue” with commercial dealings in Libyan gas and oil as long as the revenue didn’t reach Gaddafi and his supporters. The United Nations imposed sanctions on Libya which the EU adopted and expanded.

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First Published: Apr 06 2011 | 1:00 AM IST

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