Libyan rebels on the run, Gaddafi forces in control of oil town

Libyan rebels on the run appealed for arms and divided Western powers mulled military intervention. Late Thursday, Gaddafis son Seif al-Islam said victory was in sight against the rebels fighting his fathers regime. Were coming, he told a meeting of young supporters, referring to the advance of government forces towards the eastern rebel bastion of Benghazi, Libyas second city.Medics say 400 people have died and 2,000 more been wounded in eastern Libya since February 17. And the United Nations said more than 250,000 people had now fled the fighting in Libya since the revolt against Gaddafi started.Gaddafis forces on Wednesday captured Zawiyah, the site of major oil installations 50 kilometres (30 miles) west of Tripoli, using artillery and tanks to drive the rebels from the city after several days fighting. With its fighters in retreat, the opposition appealed to the international community to intervene.One source close to French President Nicolas Sarkozy said he would propose to his European Union partners limited air strikes against Kadhafi loyalists. Britain and France, in a joint letter to EU president Herman Van Rompuy, called on the European Union to recognise the countrys rebel national council.But a two-day meeting of NATO defence ministers in Brussels, which started Thursday, agreed only to send more ships towards Libyas coast, delaying a decision on a no-fly zone until the United Nations had approved it. The EUs foreign policy chief Catherine Ashton will fly to Cairo to meet Arab League leader Amr Mussa, where the Leagues foreign ministers meet this weekend to discuss a no-fly zone over Libya.Italy and Germany expressed surprise at Frances recognition of the Libyas opposition council -- and Germanys Chancellor Angela Merkel made clear her scepticism over any military action.In Washington, US Secretary of State Hillary Clinton said Thursday that proposals for a no-fly zone over Libya would be presented to NATO next Tuesday. But she stressed that any final decision had to be taken by the United Nations. Clinton will travel to the Middle East next week and meet senior anti-Gaddafi figures.Seifs prediction that his fathers forces were set to beat the rebels got support from Americas top spy James Clapper, Director of National Intelligence (DNI) who suggested that Gaddafis forces would eventually prevail.