WASHINGTON: Stalemate in Libya is giving way to building rebel pressure against the regime of Muammar Gaddafi, according to new US intelligence reports, US officials said.

While the battle is far from won, the officials point to three key indicators: dwindling fuel supplies, a cash crisis and reports of low morale among regime troops. The assessment comes as French authorities describe overtures from Libyan emissaries reportedly seeking sanctuary for the Libyan leader.

While the rebels face their own supply problems, they have captured towns from Nalut to Kikla in Libya's western Nafusa mountains and cut a key crude oil pipeline that feeds one of the regime's major refineries, US officials said. They cite intelligence estimates that fuel shortages could occur within as little as a month. Gaddafi is also facing a cash crisis after Turkey cut off his access, on July 4, to hundreds of millions in Libyan funds held in a Turkish-Libyan bank. While Gaddafi could not access actual cash, he had been issuing letters of credit to pay his debtors, including fuel importers.

SOURCE