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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Africa Europe Latin America Middle East North America Rebels 'hold' key refinery town as many killed AFP - Saturday, March 5 Send IM Story Print RASLANUF, Libya (AFP) - – Libyan rebels said they had seized a key oil refinery town in some of the heaviest fighting of the rebellion that left "many dead", a claim denied by a senior government official. With claim and counter-claim shifting with the battle lines in the North African country's desert sands, Venezuela said Libya had given it a green light to form a peace mission, a move already rejected by the rebels. The fighting centred on the town of Raslanuf, where hundreds of jubilant rebels cheered and fired into the air late on Friday, saying they were in control. An AFP reporter saw rebels positioned outside the Harouge Oil Operations compound, at the military barracks, police station and at the gates to a nearby residential area. But in Tripoli the deputy foreign minister in Moamer Kadhafi's government, Khaled Kaaim, said "the government controls it: in Raslanuf, everything is calm." Earlier a government source admitted that Braga, between Raslanuf and the rebel headquarters of Benghazi, was in rebel hands, only to be swiftly contradicted by a colleague, who said fighting there was still ongoing. Raslanuf is 200 kilometres (120 miles) east of Sirte, the Libyan strongman's hometown. Loud explosions and machine-gun fire could be heard in the desert 10 kilometres east of Raslanuf, as truckloads of armed insurgents headed in that direction accompanied by ambulances. "They are firing Grad rockets. I saw four people killed in front of me. A rocket hit them," said a rebel, who gave his name as Marai. Meanwhile, state television said earlier Kadhafi's forces had wrested control of Zawiyah, 60 kilometres west of Tripoli and the location of a major oil refinery. Scene: Libyan regime flaunts its control of the west But a government official later said "pockets of resistance" remained, and a local politician vehemently denied the television report and said opposition forces were still in control of the town. British Sky News journalist Alex Crawford said the town was "under siege" by Kadhafi's army and that residents feared an attack. "They fear that they are going to be attacked tonight and they are digging in to try to defend themselves," Crawford said. In an earlier television report from a hospital in Zawiyah, she said at least three people had died and there were up to 50 people wounded, seven of them critically. Two children were among those hurt. Crawford said thousands of protesters, mainly unarmed, "were marching towards the military lines when the army opened fire using tanks, weapons. They fired several times, repeatedly at the protesters and they also used machine gun fire". "A number of the protesters were hit and we're now in the hospital where a number of them have got bullet wounds to the back. Several ambulances were called and they were fired on as well," she said. A doctor treating rebel casualties from fighting in Raslanuf said there were "many dead and wounded," particularly from rocket fire, in the assault on the town. "We saw people dying everywhere," a rebel volunteer, Abdul Rauf, told AFP on his way back from the front in a bloodstained vehicle. In another incident, at least 19 people were killed and dozens wounded when twin blasts ripped through a weapons depot at the Al-Rajma military base, southeast of Benghazi, doctors said. Related article:Weapons depot blasts kill 19 The cause of the explosions was not immediately clear, but most residents ruled out an air strike by Kadhafi loyalists. Resident Abdallah Bubakr told AFP rebels turned up at the base demanding weapons to take to the front at Raslanuf. "Two cars rode up with people at the place and said they wanted weapons to take to Raslanuf. They entered the store and just after they left Rajma, there was the first explosion, followed five minutes later by another," he said. In Tripoli, meanwhile, police fired tear gas at around 100 anti-regime demonstrators in the Tajoura district of the capital after Friday prayers, a witness said. Another said opponents and supporters of the regime traded blows near the capital's Green Square. Oil prices soared again because of the unrest. New York's light sweet crude for April delivery briefly topped $104 a barrel to the highest level for two and a half years, while world powers watched anxiously, stymied by the need to act in unison against the Libyan strongman. The European Union warned it could deploy warships to enforce an arms embargo on his country, while urging Tripoli that humanitarian workers be allowed into the country. Venezuela's foreign minister said the peace mediation mission, already flatly rejected by a spokesman for the rebels, would be made up of "active and influential states of Latin America, Asia and Africa". In New York, a letter sent to the UN Security Council demanded a suspension of sanctions against the Libyan leader and his circle. The letter said only "a modicum" of force had been used against opposition demonstrators, and that the government was "taken aback" by the sanctions ordered last week. Scene: Foreign journalists kept on tight leash in Libya The regime called for the travel ban and assets freeze ordered again Kadhafi and his entourage "to be suspended until such time as the truth is established." The UN refugee agency said Friday that fewer than 2,000 people had crossed the border into Tunisia on Thursday, compared with between 10,000 and 15,000 on previous days, citing the presence of heavily armed Kadhafi forces. Those who did manage to cross told the UNHCR "their mobile phones had been confiscated en route, along with cameras," spokeswoman Melissa Fleming said in Geneva. "Many of those who have crossed the border appear to be frightened and are unwilling to speak." 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