"Since everybody is going around saying Qadhafi is a murderer, is Chavez going to say it?" the president said in a meeting with students in the capital. "Well, I do not know that to be the case. And from this distance, I am not going to condemn him. That would make me a coward, and he has been a friend for a long time."

The US Defence Department on Monday said it was moving naval and air forces into position near Libya, as Western countries weigh possible military intervention, and officials discussed a possible "no fly" zone to protect civilians.

"The United States has said it is ready to invade Libya," Chavez said. "And almost all the European countries have condemned Libya. What do they want? Libya's oil," Chavez insisted.

Thursday, Chavez praised Libya's "independence," saying Qadhafi is facing a civil war in his country.

"Long live Libya and its independence! Qadhafi faces a civil war!" the Venezuelan leader said in a Twitter message, in what was his first reaction to unrest shaking Libya since February 15.

Chavez is Qadhafi's main ally in Latin America. Both leaders regularly make public condemnations of US "imperialism" and have exchanged visits in recent years.

Ties are so close that Qadhafi was rumoured at one point to have fled to Caracas, claims later denied.