Gaddafi forces continue advance

Forces loyal to Muammar Gaddafi destroyed an oil pipeline and storage plant today as they pounded rebels with artillery and gunfire in at least two major cities.

Gaddafi appeared to be keeping up the momentum in his fight against rebels trying to move on the capital Tripoli from territory they hold in eastern Libya.

The Sidr oil facility, 360 miles east of Tripoli was attacked by artillery and planes.

Gaddafi's successes have left Western powers struggling to come up with a plan to support the rebels without becoming ensnared in the complex and fast-moving conflict.

President Barack Obama's most senior advisers were meeting to outline what steps are realistic.

They planned to examine the ramifications of a no-fly zone over Libya and other potential military options.

Britain and France are pushing for the UN to create a no-fly zone and while the US may be persuaded to sign on, such a move is unlikely to win the backing of veto-wielding Security Council members Russia and China, who traditionally object to such steps as infringements on national sovereignty.

The two sides in Libya traded barrages of artillery shells and rockets today about 12 miles west of the oil port of Ras Lanouf, an indication that regime forces were much closer than previously known.

Ras Lanouf is the westernmost point seized by rebels moving along the country's main road on the Mediterranean coast.

Rebels also hold territory south of Tripoli and homes and other buildings in the city of Zawiya were shelled by government forces.

Meanwhile a high-ranking member of the Libyan military flew to Cairo with a message from Gaddafi.

Maj. Gen Abdul-Rahman bin Ali al-Saiid al-Zawi, the head of Libya's logistics and supply authority, asked to meet Egypt's military rulers.

Al-Zawi arrived on a private jet which left a small Libyan airport and flew through Maltese and Greek airspace before landing in Egypt.

There have been no public contacts between the Libyan regime and Egypt's ruling generals since the Libyan uprising broke out on February 15, and there have been no known government-related flights during that time.

Gaddafi said in a television interview that Libyans would fight back if Western nations imposed a no-fly zone to prevent his regime from using its air force to bomb government opponents staging a rebellion.

He said imposing the restrictions would prove the West's real intention was to seize his country's oil wealth.

"Such a situation would be useful," Gaddafi said. "The Libyan people would understand their real aims to take Libya under their control, to take their freedoms and to take their oil and all Libyan people will take up arms and fight."

In separate remarks, he called on Libyans in the rebel-held east of the country to take back control from the opposition leaders who have seized the territory.

Gaddafi said there were no legitimate grounds for a foreign intervention in his country, insisting that Libya was only fighting al Qaida as in Afghanistan or Pakistan.

"If al Qaida seizes Libya, that will amount to a huge disaster," Gaddafi said. "If they take this place over, the whole region, including Israel, will be dragged into chaos. Then Bin Laden may seize all of north Africa that faces Europe."

The violence in Libya has taken a toll on the country's oil production. For the past week, government forces and rebels have been battling around several key oil ports east - Brega, Ras Lanouf and Sidr.

At their peak, the three export terminals handled about 715,000 barrels of crude per day, or roughly 45% of the country's exports. A fourth eastern port, Marsa al-Harigah, handled another 220,000 barrels per day.

In total, the four ports would then account for almost 60% of the country's crude exports.

"We were already seeing Libya as pretty much being closed," said Samuel Cizsuk, Middle East oil analyst with IHS Global Insight in London. "It was only a question of time before the escalating violence would damage oil facilities."

"Libya has been discounted from the global markets," he said.