So Much For Libyan Rebel Oil Exports: Gaddafi Forces Destroy Last Fuel Tanks Under Rebel Control; NATO Land Offensive Now Unavoidable

Tyler Durden's picture

And so the badly thought out experiment to supply Libyan rebels with a central bank, to be used to fund an "alternative" fuel industry comes to a prompt and fiery end. Reuters reports that "Libyan government forces destroyed four fuel storage tanks and set several others ablaze in rebel-held Misrata, dealing a blow to the port city's ability to withstand a government siege, rebels said on Saturday." Not surprisingly this fits in perfectly with the assumption first postulated by Zero Hedge that Gaddafi will destroy his entire oil infrastructure before letting it fall into "enemy" hands. This likely marks the end of the Libyan rebellion and will force NATO to launch a land offensive or suffer a crushing blow to its already shaky reputation as globocop, especially now that the US is in theory at least, out of the air campaign against Gaddafi. Which means that the boots on the ground are soon coming. Alas, it will not be the marines in the Kearsarge. As the below naval update map indicates, the Kearsarge has been relieved and now has left the theater of operations, however replaced with LHD 5 Bataan.

More from Reuters:

Misrata, the last remaining city in the west under rebel control, has been under siege for more than two months and has witnessed some of the war's fiercest fighting.

Rebels gave varying accounts of the bombardment but said it hit fuel used for export as well as domestic consumption.

"Four (fuel) tanks were totally destroyed and a huge fire erupted which spread now to the other four. We cannot extinguish it because we do not have the right tools," rebel spokesman Ahmed Hassan told Reuters.

"Now the city will face a major problem. Those were the only sources of fuel for the city. These tanks could have kept the city for three months with enough fuel," he said by telephone.

The video of the burning tanks can be seen below:

And another big black eye for NATO:

NATO coalition aircraft have been bombing Libyan government military targets and enforcing a no-fly zone under a U.N. resolution. Western and Arab countries this week agreed to provide rebels with millions of dollars in non-military aid to help them keep services and the economy running.

Rebels have long been demanding more heavy weapons to take on the Libyan leader's better-armed and trained forces.

The head of the rebel forces in eastern Libya retracted an assertion by a rebel spokesman that Italy had agreed to supply them with weapons to help in their fight to oust Gaddafi.

"We have not received any weapons, not from Italy nor from any other country," Abdel Fattah Younes told al Jazeera television. "Maybe one of the brothers failed to express himself properly ... we apologise to Italy on behalf of the brothers in the National Council."

A spokesman for the rebels' Transitional National Council had told a news conference in Benghazi earlier in the day that weapons would be provided to the insurgents soon.

In Rome, a Foreign Ministry spokesman said no such agreement had been reached.

Italy has backed the rebels, formally recognising the transitional council as the only legitimate representatives of the country, but it is unlikely it would go further than other countries in the anti-Gaddafi coalition.

In the meantime the Libyan civil war continues to get "accidentally" hit Tunisian cities:

The Tunisian town of Dehiba has been hit repeatedly by stray shells in recent weeks, and on Saturday Tunisia condemned the "extremely dangerous" shelling and said it would take all necessary measures to protect its sovereignty.

The Libyan government denied targeting Tunisian soil deliberately.

"We said this (shelling) was an error and we have apologised that this took place and have asked the military forces to ensure this doesn't happen again," Libyan Prime Minister Al-Baghdadi Ali al-Mahmoudi told a news conference in Tripoli.

The battle is over the Dehiba-Wazzin border crossing, whose control gives the rebels a road from the outside world into strongholds in the Western Mountains region. Gaddafi's forces control a far bigger crossing to the north.

And while NATO ponders how to best break to the world that it has failed in Phase 1 of the Libyan offensive, it appears that 1.6 million of barrels of oil will be out of the supply system for a long time. Furthermore, with developments in Syria and Yemen getting worse by the day, we are confident that geopolitical worries will once again trump margin hikes, and crude will promptly return in the triple digits within a week.

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Muir's picture



"Land Offensive Now Unavoidable"




So this is bullish for silver, I guess.



e_goldstein's picture

boing, boing, boing, boing...

Ahmeexnal's picture

It's on, here's footage of British elite SAS commandos beach landing in Libya:

Sabibaby's picture

You couldn't find anything more current than April 2007?

Manthong's picture

Well come on all of you big strong men
Uncle Sam needs your help again.
He’s got himself in a terrible jam
Way down yonder in Libya land.

So put down your iPhones
and pick up a gun,
We’re gonna’ have a whole lot of fun.

(apologies to Country Joe)


Long-John-Silver's picture

Everyone is too busy playing Call of Duty.

Michael's picture

We could always issue gas ration stamps, 10 gallons per week per household,  just like we did during WW2, if fuel supplies become scarce.

contagiousNY's picture

so its 1 2 3 whatr we fightin for

dont ask me I dont give a D

next stop is Tripoli

Michael's picture

New Video I uploaded and added my interpretation to, using Led Zeppelin music;

Osama Bin Laden or Not, On to Kashmir 


Green Leader's picture
This video contains content from WMG, who has blocked it in your country on copyright grounds.
AUD's picture

And oil too, and sugar. The destruction of a significant portion of the sugar cane crop in Queensland recently caused a glut of sugar on the market but now that we haven't heard anything about the Japanese nuclear disaster for a few weeks I'm thinking its bullish for Leo's solar stocks... and Irish government debt.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

And don't forget what NATOs "Ovaltine Storm" invasion of Ivory Coast did for cocoa prices.


Tuco Benedicto Pacifico Juan Maria Ramirez

aerojet's picture

How the hell does destruction of a crop create a glut?

Jalaluddin's picture

You are out of touch with the new reality - the neocons create reality:

War is peace.
Famine is plenty.
Cooling is warming.
Less is more.
Black is white.

You should have known "It takes a silver shortage to smack the price down dontcha know it."

These guys at the Ministry really know their stuff - there are some economically theoretically challenged who still believe that scarcity causes prices to rise - but the Ministry economists who control all the knobs and levers can work wonders - they know that prices and economic statistics are mutable. For example here in Bolehland (aka the State of Malaise) where anything (and everything) goes, prices can rise but the CPI doesn't move accordingly.

You probably never mastered Newthink and also suffer from political dyslexia, calling Eric Blair's book "1984" when the title is actually "1948". Quite likely you had a deprived childhood and were not allowed to read Mad Magazine - I'm sure you need help.

Hushups's picture

Everything the US does is bullish for silver.

Nate H's picture

When silver is at $200/oz, people on this website will wish for the day when it was $35/oz and the social stability, humour, supply chains and vacations that accompanied it...

ISEEIT's picture

I'm just trying to hit it right on EUR/USD.

Oil up = dollar down right?

Or is it the other way around?

What the fuck ever.

I'm likely long EUR Sunday. To much tempatiation my sweetums. They will want to recoup some losses?

Maybe I will just use what I 'GOT' shorting EUR/CHF last week?

It was nice.

Millivanilli's picture

Endless war

Endless profits

for who...

Popo's picture

One should also note:  Libyan oil infrastructure has had a massive amount of Chinese investment over the past 10 years.   This isn't so much a war against Libya as it is a direct assault on Chinese oil expansionism.   China just learned a very large lesson.   And the lesson is this:  You need an extremely strong military to play in the oil space. 

One should *also* note:  China is taking this lesson to heart.

Pants McPants's picture

One needs an extremely strong military to play in the oil space.....or one waits for the world's "strongest" military to go bankrupt.

It appears China is playing both hands, and well.

swmnguy's picture

.....or one waits for the world's "strongest" military to go bankrupt.

Meanwhile, everytime "the world's 'strongest' military" destroys the infrastructure you just built, you rebuild it, and re-invoice your client.  That, too, is a lesson China has learned well from the US.  Once you've sold what you have to sell, the trick is to get a captive buyer to need to buy it again.  Aerial bombardment doesn't do most of the things its proponents claim, but this need it fulfills very well.

Confuchius's picture

3 Trillion if you count both hands.

Should be an interesting game, eh chaps?

morkov's picture

didn't China sign an easy-peasy contract with Russia for acquiring "all excessive" capacity of oil and gas? i think Europe is feeling the shortage in supplies already...lesson learned! try to destabilize that!  LOL

Weisbrot's picture

Sarah Palin is proved correct again.... Drill baby drill....

Flakmeister's picture

Are you being serious or fatuous? I seriously hope it is the latter.

Atomizer's picture

Give me a Q .. Q

Give me a F.. F

Give me a D.. D

What's that spell?  Quasi Fiscal Deficit….. And the crowd roars.


I'll let you google that tidbit.


CrossTalk on IMF: Destroyer of Nations?


IMF-ing the world


The entire charade comes full circle. You'll understand in time.

Manthong's picture

Was that the Woodstock or the Fish cheer version?

We must all be bozo's on this bus.

davepowers's picture

don't take off your shoes, jobs in on the way

SecondComing's picture

Whatever you do, take care of your shoes

Hephasteus's picture

Poor JPMorgan. Everything they short explodes.

CrashisOptimistic's picture

I am just guessing here that Russia, pumping 10.1 million barrels/day, which nets it about what, $85/barrel after paying Royal Dutch Shell, has no particular reason to want to see an oil price decline.

And so I'm also guessing they will veto any expansion of UN authorization to do anything whatsoever.

By the way, how is that Saudi Arabian replacement crude flow working out?

Tyler Durden's picture

Could be wrong on this, but NATO does not need UN authorization (avoids Russia/China veto route) to escalate.

e_goldstein's picture

You're right. NATO is a defense alliance outside of the jurisdiction of the UN.


cossack55's picture

So a pipeline to Italy is enough to place Libya in the N. Atlantic?

Long-John-Silver's picture

but they do need the American MIC.

robobbob's picture

no, they don't.

but it certainly strips away that fig leaf of lawful justification and, what are they calling that new policy? Exposing "Responsibility to Protect" is just more naked imperialism.

And without the UN mandate, just what part of the NATO treaty justifies overthrowing a government that did not constitute a threat to any member nation?

sun tzu's picture

Would the Barbary Pirates capturing European and American merchant vessels count?

nonclaim's picture

Justification may fall under the "disrupting energy suplies" into the EU.

Just like turning off gas supply now and then like the russians do, but Libya in not Russia...

CrashisOptimistic's picture

Well, yes, in the context of no sort of authorization was "needed" to begin with, in that you do as you please if you have the biggest guns.  But the NATO participants have been very stringent about the "occupation forces" prohibition in the UN resolution.

So if they have paid attention to it so far and leaned on it as reason not to proceed, one would think that would not change now.  And so . . . they put out feelers for an additional resolution, Russia quietly says no, and we never hear further about it.

Gadaffi is a genius.

knukles's picture

WTF is anybody thinking about?

Since when does invading a sovereign nation, killing innocent civilians, destroying private and public infrastructure, causing starvation, represing individual rights, spreading disease and misery necessitate Justification?

Have you all lost your fucking minds?

Welcome to the Hegleian Dialect.


Rick64's picture

By the way, how is that Saudi Arabian replacement crude flow working out?

 Ahh we will get back to you on that.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

It is my understanding that Saudi Crude is of a different grade than that coming out of Libya, hence it would not be apples for apples anyway.  But, the thing to remenber here is that the Saudis understand that they have been doublecrossed by the West.  Hence they and Pakistan, as Webster Tarpley puts it, are on a "jailbreak" away from the imperialists into the arms of the Chinese.  The Chinese and Russians have now come out with at joint statement saying they are against the invasion of sovereign countries now being perpetrated by NATO.  Think about it.  This sets the stage for WWIII.  Pakistan is an ally of China and has nukes.  India is an ally of the U.S. and Israel and has nukes.  "And" Russia and the Chinese are playing footsie with one another. 


Now, one theory has it that this Bin Laden killing fable of a week ago was done primarily to isolate Pakistan and coincidental with some kind of false flag perpetrated by the west would be a pretext to invade Pakistan.  Why?  I have no freaking idea!  Apparently the globalists want WWIII?  I can think of no better way of getting us there than by invading a Chinese ally.  Hope you are buying physical hard assets while they are down.  This could get ugly!

CrashisOptimistic's picture

You are engaged in old normal thinking.

If oil is depleting, do you realize how every single word of your thinking becomes meaningless?

There are only two causes for war now: Securing oil, or destroying demand -- with destroying demand being in a very literal sense.

You kill the consumers, or you confiscate oil.  Nothing else matters.

Arius's picture

"old normal thinking"

well put....

newworldorder's picture

Ultimate game theory. Your brain cells are working fine.

StarvingLion's picture

Oil didn't matter in wWII.  Uranium and how to exploit it did.