"Oil distribution companies said the large quantities of oil that they have will be enough to cover all demand," said the official JANA news agency.

Reports of oil shortages have circulated in recent days in the Libyan capital, prompting long queues at petrol stations.

The National Oil Corporation said last week that production had plummeted to 400,000 barrels per day as a result of the insurrection shaking the country for more than a month and spurring the mass evacuation of foreign workers.

Most oil companies operating in Libya, including France's Total and China's CNPC, have partly or completely shut down production since the uprising erupted against Libyan leader Moamer Kadhafi.

Libya has the largest known oil reserves in Africa, and is the continent's fourth biggest producer.