They streamed back after several hours of sustained shelling and at least three air strikes around five kilometres (three miles) west of the rebel-held town on Libya's northern Mediterranean coast, an AFP reporter said.

The rebels initially appeared to gain some ground, firing off around 50 rockets and making some advance towards the sand dunes, beach and an oil facility.

Forces loyal to Moamer Kadhafi then fired about a dozen shells and rebels gave the call to retreat, got back into their vehicles and drove off the latest sign that the front line is shifting ever closer to Ras Lanuf.

The rebels had captured the town on Friday and pushed west to the hamlet of Bin Jawad some 30 kilometres (19 miles) away before being forced to retreat to a point between the two settlements on Sunday.