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article imageReport: Libya strongman Gadhaffi orders destruction of oil wells

By Leo Reyes     Feb 22, 2011 in Politics
Unconfirmed reports indicate Libyan strongman Muammar Gadhaffi has ordered the destruction of oil wells in Libya as violent protest in the eastern city of Benghazi and the capital city of Tripoli enters its second week of chaos.'s Robert Baer wrote, "There's been virtually no reliable information coming out of Tripoli, but a source close to the Gaddafi regime I did manage to get hold of told me the already terrible situation in Libya will get much worse. Among other things, Gaddafi has ordered security services to start sabotaging oil facilities. They will start by blowing up several oil pipelines, cutting off flow to Mediterranean ports. The sabotage, according to the insider, is meant to serve as a message to Libya's rebellious tribes: It's either me or chaos."
Libya is one of the world's biggest source of oil and any threat or incident that would destroy the country's oil wells would trigger a rapid spiraling of oil prices around the world which would eventually translate into higher prices of commodities and services worldwide.
William Alden of Huffington Post reports, "The price of oil, a key economic indicator, has reached a level not seen since 2008, when economies plunged into recession. Mideast unrest has already begun to affect markets in the United States, as the Dow Jones Industrial Average and the S&P 500 stock indices have stumbled. As the price of oil shoots higher, both the national and global economic recovery could be at risk."
Since protests in the Middle East began, investors have feared that the supply of oil could be compromised. In Egypt, the worry was that the Suez Canal and the Sumed pipeline, which convey nearly 3 million barrels daily, would be blocked. As protests spread, investors' fears grew: If unrest were to hit an oil-producing country, the world's oil supply could suffer, the report added.
Meanwhile, Libyan military authorities continue its crackdown on hapless protesters using brute force in dispersing the increasing number of protesters.
Although the eastern city of Benghazi has been secured by opposition forces, the capital city of Tripoli has become a scene of chaos and violence as protesters continue to resist the forces of the government.
Scores of deaths have been reported in Tripoli on top of more than a hundred people who died in city of Benghazi.
As violence continue to erupt in Tripoli, Libya's diplomats who are posted in many countries around the world have either resigned their posts or expressed their dismay on the manner the government is addressing the situation.
More about Libya, Protests, oil wells, Gadhaffi, Diplomats
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