Rebels wary of Gaddafi forces near east Libya town, Posted by Meosha Eaton

* Rebels were driven back before Western air strikes

* Air strikes help cripple Gaddafi's heavy armour

* Rebel forces depend on pick-ups with maching guns

By Mohammed Abbas and Angus MacSwan

NEAR AJDABIYAH, Libya, March 22 (Reuters) - Rebels in east Libya outside Ajdabiyah were not advancing on the strategic town on Tuesday because heavily armed troops loyal to Muammar Gaddafi could still overhelm them despite Western air strikes.

Rebels at the frontline about 5 km (3 miles) outside the town located at the gateway to the rebel-held east said three nights of air strikes were helping cripple Gaddafi's heavy armour, but his forces were still a potent threat.

"Gaddafi has tanks and trucks with missiles," said Ahmed al-Aroufi, a rebel fighter at the frontline.

The rebel forces had been driven as far back as their headquarters in Benghazi by Gaddafi's warplanes, tanks and artillery before U.N.-air strikes were launched on Saturday by France, Britain, the United States and others in a coalition.

"We need the no-fly zone for them to strike the heavy armour," he said, adding a warning against any more direct intervention.

"If they bring land forces we will leave Gaddafi alone and they will be our new target," Aroufi said, echoing rebel opposition to any involvement of foreign ground forces.

"We don't depend on anyone but God, not France or America. We started this revolution without them through the sweat of our own brow, and that is how we will finish it."

There have been signs of tensions at the front as rebels have failed to make swift progress. There is no obvious sign of a clear command structure to guide what is mostly a rag-tag force of enthusiastic but inexperienced fighters.

Overhearing Aroufi speaking to the Reuters media team, another rebel nearby, Rashad Shaafi, said: "If you want to attack, go and flank them, or do you just want to pose for the cameras?"

Gaddafi's burned out tanks, armoured personnel carriers and other vehicles destroyed by Western warplanes litter the road that his forces used on their advance on Benghazi, where the rebels have their headquarters.

Rebels say strikes halted that offensive but they also say the Libyan leader has plenty more equipment to use against their forces which rely largely on 4x4 pick ups mounted with machine guns, rocket propelled grenade launchers and other light arms.

There was no obvious sign of rebel heavy equipment at the front on Monday, although in past days and weeks rebels have been seen with a few tanks and other heavier equipment. (Writing by Edmund Blair in Cairo; Editing by Matthew Jones)

Gaddafi says will arm civilians to defend Libya, Posted by Meosha Eaton

* Gaddafi says will open arm depots to the masses

* Libya will exercise its right to self-defence -Gaddafi

* Says interests of countries in Mediterranean face danger

* Urges Africans, Arabs, Latin Americans, Asians to help (Adds quotes)

TUNIS, March 20 (Reuters) - A defiant Muammar Gaddafi said on Saturday he will arm civilians to defend Libya from what he called "colonial, crusader" aggression by Western forces that have launched air strikes against him.

"It is now necessary to open the stores and arm all the masses with all types of weapons to defend the independence, unity and honour of Libya," Gaddafi said in an audio message broadcast on state television hours after the strikes began.

He said Libya would exercise its right to self defence under article 51 of the United Nations charter, adding the Mediterranean and North Africa were now a battleground.

"The interests of countries face danger from now on in the Mediterranean because of this aggressive and mad behaviour," he said.

"Unfortunately, due to this (action), marine and air targets, whether military or civilian, will be exposed to real danger in the Mediterranean, since the area of the Mediterranean and North Africa has become a battleground because of this blatant military agression."

He also called on Arab, Islamic, African, Latin American and Asian countries to "stand by the heroic Libyan people to confront this aggression, which will only increase the Libyan people's strength, firmness and unity".

(Reporting by Tarek Amara in Tunis, Sarah Mikhail and Edmund Blair in Cairo; Writing by Silvia Aloisi; Editing by Louise Ireland)

Gaddafi tanks, jets strike deeper into rebel heartland, Posted by Meosha Eaton

* Tanks move in, fire on rebels outside oil port Ras Lanuf
* Libyan warplanes bomb oil town Brega further to east
* Libyan army siege seeks to starve out rebels in Zawiyah
* NATO, EU ministers to discuss "no-fly zone"
* France recognises rebel council

(Adds gov't forces advancing in east, France recognises rebels)

By Mohammed Abbas and Alexander Dziadosz

RAS LANUF, Libya, March 10 (Reuters) - Libyan tanks fired on rebel positions around the oil port of Ras Lanuf and warplanes hit another oil hub further east on Thursday as Muammar Gaddafi carried counter-attacks deeper into the insurgent heartland. In the west, Gaddafi's army sought to starve out insurgents clinging to parts of Zawiyah after see-saw battles this week but the rebels took an important step toward international legitimacy when France recognised their national council.

NATO and the European Union were considering imposing a "no-fly" zone over the large North African desert state to stop Gaddafi using jets and helicopters against the rebels, who have seized cities east and west of the capital Tripoli. More than 500 km (300 miles) to the east, Gaddafi's forces bombarded Ras Lanuf anew with projectiles crashing close to a building of the Libyan Emirates Oil Refinery Company.

There was a series of air strikes, and insurgents fired rockets out to sea to counter Libyan gunboats targeting their positions in the oil-producing east.
Later, at least two tanks were seen advancing towards rebel positions outside Ras Lanuf and opening fire.

The rebels also reported an air strike on Brega, another oil port 90 km (50 miles) east of Ras Lanuf, indicating that Gaddafi loyalists had not only halted a westwards insurgent push in its tracks but were making inroads into the rebels' eastern centres.
Brega had not been targeted for several days.

During fighting in the east on Wednesday, an engineer told Al Jazeera television he had seen air strikes on eastern oil facilities, apparently the first time such a complex was hit.
OPEC member Libya was turning away tankers from ports as storage depots dried up because of supply disruptions caused by the fighting, which has paralyzed exports by Africa's third largest producer and a major supplier to Europe. The Gaddafi counter-offensive has stalled a rebel advance from their eastern power base of Benghazi. They were forced to withdraw from the front-line town of Bin Jawad, just west of Ras Lanuf, after coming under heavy shelling earlier this week.

One fighter said rebels had retaken the heart of Zawiyah, the closest city -- 50 km (30 miles) west -- to Gaddafi's main stronghold Tripoli, from the army overnight. The centre appeared to change hands twice during the day in a hard-fought battle.
"We fought until after three in the morning. It's all quiet here this morning," said the insurgent, named Ibrahim, by phone.

Mohamed, a Libyan in exile abroad who got through to a relative on the outskirts of Zawiyah on Thursday morning, said it was simply not clear who was winning the battle for the city but the army had it under siege to break the rebels' will. "Yesterday (rebel sympathisers) tried to bring food and medicine from Subratha but failed. Government troops surround Zawiyah from everywhere. It is unclear who controls the centre. It changes all the time. It's street to street fighting."
Authorities have kept journalists away from Zawiyah.

Military analysts believe Gaddafi may focus on quelling the revolt to the west before turning on the east, where the rebel-held city of Misrata, which residents said has been quiet for the past few days, would lie first in their path. "Gaddafi forces are around the outside the city. They suffered a big defeat in Misrata. But they have heavy weapons," said an insurgent. "We are ready to defend any attack they launch even if we know it's going to be at a heavy price."


FRENCH RECOGNITION
France became the first significant country on Thursday to recognise the rebel Libyan National Council as the legitimate representative of the Libyan people. An official at President Nicolas Sarkozy's office said France would send an ambassador to Benghazi and receive a Libyan envoy in Paris. He was speaking after Sarkozy met officals from the Libyan National Council.

The Pentagon said it was preparing a "full range" of military options for Libya, including a no-fly zone. Plans were to be discussed by NATO ministers at talks in Brussels on Thursday. Military officers said a zone could be set up quickly. Rebel forces have appealed to Washington and its allies to impose a no-fly zone to deny Gaddafi's forces the advantage of using warplanes and prevent him moving troops by helicopter.

A no fly zone could also help protect civilians who have been caught in the fighting, with scores if not more people reported killed so far in cities like Zawiyah. A burgeoning humanitarian emergency could hasten a no fly zone decision.

The International Committee of the Red Cross said Libya had descended into civil war with increasing numbers of wounded civilians arriving in hospitals in the east.

ICRC President Jakob Kellenberger called on Libyan authorities to grant the  Humanitarian agency access to western areas including the capital Tripoli and reminded both sides that civilians and medical facilities must not be targeted.

General Raymond Odierno, commander of the U.S. Joint Forces Command, said the U.S. military was probably capable of establishing a "no-fly" zone over Libya "within a couple of days" if the international community so decided.

U.S. Secretary of State Hillary Clinton has made it clear imposing a no-fly zone is a matter for the United Nations and should not be a U.S.-led initiative. Russia and China, permanent members of the U.N. Security Council, oppose the idea, which could entail bombing Libyan air defences as a first step.

Italy, whose bases could play a critical role in any military action, has said it will back any decisions taken by NATO, the EU or the United Nations, clearing the way for U.S. naval forces based in Naples to be deployed if needed.


LINE IN THE DESERT
Counter-attacks by Gaddafi loyalists suggest the flamboyant leader, in power for four decades, will not go as quietly or quickly as fellow leaders in Egypt and Tunisia did in a tide of popular unrest rolling across the Arab world.

An upsurge of fighting appears to have cemented a de facto split of Africa's fourth biggest country into a government-held western area around Tripoli and an eastern region held by ragged but dedicated rebel forces.

EU foreign ministers will also discuss North Africa in Brussels on Thursday, focusing on how they can support the process of transition in Egypt and Tunisia, while using sanctions and other means to apply pressure on Gaddafi.

Two members of Libya's opposition council visited the European Parliament on Wednesday and said they wanted EU moral support, political recognition and a no-fly zone shielding the territory they hold -- but not any form of military intervention in a country sensitive about former colonial domination.


RUSSIA CUTS OFF ARMS TO LIBYA
In another move to isolate the Libyan leader, Russia will ban all weapons sales to Libya, the Kremlin said in a statement on Thursday, effectively suspending its arms contracts with the government of Gaddafi.

Libya's top oil official said the unrest had cut output to about half a million barrels per day from 1.6 million, but the oil industry was still centrally coordinated. Brent crude oil rebounded above $116 a barrel, renewing fears global economic recovery could be hit. Gaddafi has said he will die in Libya rather than flee. But a Libyan-born analyst said Gaddafi's inner circle had approached countries in Africa and Latin America about giving him refuge.


(Additional reporting by Tom Pfeiffer in Benghazi, Mariam Karouny in Ras Jdir, Mohammed Abbas in Ras Lanuf, Piotr Pilat in Benghazi, Alexander Dziadosz in Ajdabiya, Hamid Ould Ahmed in Algiers, Luke Baker in Brussels, Ross Colvin and Andrew Quinn in Washington, Stefano Ambrogi and William Maclean in London, John Irish in Paris, Stephanie Nebehay in Geneva; writing by Mark Heinrich; editing by Giles Elgood)

Oil surges after Libya airstrike near oil terminal, Posted by Meosha Eaton

* Libyan air strike hits near oil terminal

* Libya's NOC chairman says oil could rise above $130
* Libyan oil output falls further amid clashes in east
* EIA data shows Cushing stocks up over 1.1 mln barrels
(Recasts, updates prices, market activity)

NEW YORK, March 2 (Reuters) - Oil prices jumped to near 2-1/2 year highs on Wednesday after an airstrike near Libya's oil infrastructure kept the market braced for a prolonged disruption from the OPEC nation and worried unrest might spread to other regional producers. Fresh airstrikes hit Brega, about 2 kilometers (1.2 miles)from a Libyan oil terminal, after embattled leader Muammar Gaddafi launched a land and air offensive to retake territory in Libya's east. The reprisal sparked calls from rebels for foreign airstrikes on African mercenaries they said were helping him stay in power.

"It looks like an attack fairly close to what is one of Libya's largest storage and export terminals," said Andy Lebow, trader at MF Global in New York "It's hard to say if the Libyan government is trying to target oil infrastructure in the east or whether they're just
targeting rebel-held areas, but the market's reacting to this threat either way." Gaddafi pledged in a fiery speech before hundreds of supporters he would crush the revolt against his rule. By 12:35 p.m. EST (1735 GMT) Brent crude traded up $1.57 to $116.99 a barrel, off the session high of $117.81. Brent hit a
2-1/2 year high near $120 a barrel on Feb. 24 on the Libyan crisis. U.S. crude futures rose $2.05 to $101.68 a barrel after hitting $102.37. They rose above $103 on Feb. 24. Brent's premium against U.S. crude widened to more than $16, after closing at $15.79 on Tuesday, when the Brent/West
Texas Intermediate spread hit $17.12, a record.

The head of Libya's oil company, Shokri Ghanem, told Reuters the nation's problems could push prices over $130 a barrel if they persist. Libya's normal output of 1.6 million barrels per day had been cut to 700,000-750,000 bpd as most of the industry's foreign workers had taken flight after the crisis began, he said.
Governments in Yemen, Oman, Iran and Iraq have clashed with protestors seeking reforms as popular unrest has spread in the region holding more than 60 percent of the world's oil reserve. Crude pared gains in the morning after the release of U.S. oil inventory data from the U.S. Energy Information Administration showed inventories at the Cushing, Oklahoma,delivery point for the New York Mercantile Exchange's oil futures contract hit a record high. Brimming stocks at the hub have been partly responsible for the wide discount of U.S. crude to Brent in recent weeks. Total U.S. inventories of both crude and refined products fell, however, the EIA report showed.

(Reporting by Gene Ramos, Robert Gibbons, David Sheppard,Matthew Robinson in New York; Jessica Donati-Bourne in London;
Florence Tan in Singapore; Editing by Marguerita Choy and David Gregorio)