Brent crude down as Libya rebels enter Tripoli

SINGAPORE: Brent crude fell in Asian trade Monday as rebels seized parts of Libya's capital and the fate of leader Moamer Qadhafi hung in the balance.

Brent North Sea crude for October delivery dropped $1.87 to $106.75 from Friday's close while New York's main contract, light sweet crude for September delivery was up 55 cents to $82.81 a barrel.

"This is really the main news event," Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore, said of the situation unravelling in Libya.

"Rebels have entered Tripoli... there have also been reports Qadhafi will get out of the country," Shum told AFP.

Libya, a key crude-exporting nation that was producing some 1.49 million barrels per day before the rebellion broke out in mid-February, has seen its output slashed significantly since the revolt began.

About 85 percent of Libyan oil output was exported to Europe until the revolt disrupted the country's production.

Brent crude is under selling pressure as a resolution of the crisis in Libya, which will likely see the country gradually resuming full scale oil production, will mean more supplies to the European markets, analysts said.

Libyan rebels surged into Tripoli Sunday in a final drive to oust Qadhafi as they seized swathes of the capital, including symbolic Green Square and arresting the strongman's son, Seif al-Islam.

However, senior rebel figure Mahmud Jibril said there were still pockets of resistance in and around Tripoli and warned his forces to be cautious.

"The fight is not over yet," he said on rebel television Al-Ahrar. "God willing, in few hours our victory will be complete."

Meanwhile, US President Barack Obama said Sunday Qadhafi's regime had reached a "tipping point" and the Libyan strongman must leave now to avoid further bloodshed.

In a written statement, Obama also called on Libyan rebels who have surged into Tripoli to respect human rights, show leadership, preserve the institutions of the Libyan state and move towards democracy.

"Tonight, the momentum against the Qadhafi regime has reached a tipping point. Tripoli is slipping from the grasp of a tyrant," Obama said.

Copyright AFP (Agence France-Presse), 2011