Reports indicate that Muamar Gaddafi's regime is facing its last hours in Libya. Following a night of combat, rebel troops have been able to occupy nearly all of Tripoli, according to several news agencies.

Rebels have settled in key places such as Green Square, which they now name the Square of Martyrs. Rebels have also taken control of public radio and television.

On the other hand, between 15 and 20% of Tripoli remains under control of Gaddafi forces, as affirmed by a rebel spokesperson to television network Al Yazira.

British Prime Minister, David Cameron, said the situation in Tripoli was "clearly very fluid today" and there could be no complacency.

"No transition is ever smooth or easy," he said. "But today the Arab spring is a step further away from oppression and dictatorship and a step closer to freedom and democracy."

The oil sector is up on hopes that the rebels' successes will lead to a resumption of oil production from Libya in the near future. It is the best-performing sector on the Stoxx600 (+1.95%) at this time. Companies such as Repsol and Eni are sharply higher.

The International Energy Agency had estimated that it could take until 2015 for Libyan oil production to return to pre-uprising levels of 1.7m barrels per day, or 2% of global output.

However, Libyan rebels have said they could get two large fields in the east of the country back online within three weeks.

On Monday Brent oil prices fell 2.8% to under $106 per barrel.

"Once they get back to recovery mode, a million barrels per day are expected to enter the global supply," said Jonathan Barratt of Commodity Broking told the BBC.

"This will add weight to the decline in oil prices that we have seen recently." he added.


M.D.

Related share prices
Edinburgh New Income Trust (ENI) share price