Libyan rebels claim they control most oil production

Libyan rebels claim that they are producing 100,000–130,000 barrels of oil per day, a number they say they can increase to 300,000. They also claim that they have an agreement with Qatar that will enable them to export oil and access the revenues through an escrow account. Qatar's government was the first in the world to recognize the rebel council in Libya as the legitimate representatives of the Libyan people.

The rebel government is eager to begin exporting oil to secure a steady flow of income, despite earlier saying that the government had enough cash for now.

Ali Tarhouni, the rebel responsible for oil, made the  remarks as rebels forces advanced from Ajdabiya through Brega, Ras Lanuf, and As Sidr. These towns, together with rebel-held Tobruk and Zouiatina, give the opposition control over five of Libya's six oil terminals.

The country’s remaining oil export terminal lies at Zawiya, which is still held by forces loyal to Libya’s leader Moammar Gadhafi.

London-based Exclusive Analysis (EA), which sees a prolonged stand-off developing in the country, reported that even if rebels capture Sirte and the oil towns on the coast, it is unlikely that anything more than a small fraction of oil exports would be resumed.

“Moreover, as long as pro-Gadhafi forces can attack pipelines, foreign oil workers needed for the resumption of full production are unlikely to return due to fears for their own safety,” EA said.

Meanwhile, reports suggest that the month-long shutdown of Libya's oil fields is already creating strains in the world's oil networks as consumers scour the world to replace its particular variety of sweet crude.

Although several members of the Organization of Petroleum Exporting Countries have ramped up production to offset the decline in Libya’s output, oil markets are concerned about the difference in quality.

Libya’s low-sulfur sweet crude is said to be easier and cheaper to refine than the crude from other OPEC producers such as Saudi Arabia.