Moamer Kadhafi accused the West on Wednesday of wanting to seize Libya's oil and warned that a no-fly zone would backfire as his forces pounded rebel lines, setting a string of oil facilities ablaze. My comments: America and west thrist for oil increase day by day and find excuse for control the oil. The boss of Libya's state oil firm insisted the damage to infrastructure was minor but acknowledged that oil output was down more than two-thirds, as the price for London's main contract jumped $2.56 to $115.62.
"The colonialist countries are hatching a plot to humiliate the Libyan people, reduce them to slavery and control the oil," Kadhafi said on state television.
He again accused Al-Qaeda of being behind the insurrection that began on February 15 and called on inhabitants of Benghazi, the rebels' main base, to "liberate" Libya's second city.
His government offered a $410,000 bounty for the capture of Mustafa Abdel Jalil, head of the rebel national council which declared itself the North African country's sole representative in Benghazi on Saturday.
Strong blasts rocked the rebel-held oil town of Ras Lanuf on Libya's central coast, forcing the insurgents back. A mechanic said a pipeline had been blown up.
An oil installation was also ablaze near As-Sidra 10 kilometres (six miles) further west although National Oil Corp boss Shukri Ghanem played down its importance.
"Fortunately, the explosion today was in a small storage supply facility in Sidra ... It has not affected the production," Ghanem said, adding: "It was diesel, it's not crude oil."
Scores of rebels packed into dozens of vehicles and retreated into Ras Lanuf after several hours of sustained shelling and at least three air strikes west of the town.