Libyan rebels are advancing westwards after recapturing the strategic eastern town of Ajdabiya from government controls with the help of coalition air strikes.
Reports late on Saturday suggested rebels had already pressed onto the key oil-port town of Brega, 80 kilometres to the west.
"We are in the centre of Brega," rebel fighter Abdelsalam al-Maadani told the AFP news agency by telephone. But Reuters said rebels were only on the outskirts of Brega.
Al Jazeera's James Bays, who reached Ajdabiya on Saturday, said that while it appeared that rebels had taken over the town of Brega, it remained unclear who controlled the nearby oil port.
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Meanwhile, pro-Gaddafi forces were attacking the opposition-held city of Misurata in the west of the country with heavy shelling, witnesses said, drawing coalition air strikes against government military targets.
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The port city has experienced some of the heaviest fighting between rebels and forces loyal to Gaddafi since the uprising began on February 16.
Pro-democracy activist Ahmed Al Misrati, speaking from Misurata, told Al Jazeera the town was "besieged from all sides".
"Since morning [Misurata] has been under heavy gunfire and heavy bombardment ... by tanks or mortar shells," said Al Misrati. "This bombardment is indiscriminate and arbitrary, sometimes targeting residential plots and one entire family was killed - the father and his children.
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They [Gaddafi troops] are also stationed in other rooftops, especially the high buildings ... Anybody in the street comes under heavy gunfire and now the situation is exacerbating and is very, very dire."
But rebels said later that coalition forces had made several raids, bombing locations on the outskirts of the town including an ammunition dump. The strikes had reduced the shelling, they told Reuters.
British missile strikes destroyed three armoured vehicles in Misurata and two more in Ajdabiya, the Royal Air Force said in a statement.
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Celebrating in the streets Rebel fighters further east were earlier celebrating on the streets of Ajdabiya after driving pro-Gaddafi forces out of the town.
"There is no doubt about it, you can probably hear some of the celebrations behind me, Ajdabiya is in opposition hands," Al Jazeera's James Bays said from the city on Saturday as celebratory gunfire rang out.
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"Gaddafi forces have been controlling the ring road that goes around Ajdabiya ... that has been the situation for six days, but they have now been cleared from that position."
But Libyan government officials said that the army had withdrawn to save residents from more bloodshed.
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Rebel forces had initially captured Ajdabiya during an advance along Libya's east coast that was halted and reversed in a counter-offensive by government forces backed by superior air power earlier this month. But coalition airstrikes which have destroyed Libya's air force have tipped the balance back towards the rebels, Bays said.
"The road is open beyond Ajdabiya, and [the rebels] are heading, streaming along that road ... they are on the road and they are moving forward," Bays reported.
One rebel, speaking to Reuters, praised the coalition air strikes, saying: "Thank you Britain, thank you France, thank you America."
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General 'captured' Many fighters belonging to forces loyal to Muammar Gaddafi were also taken hostage by rebels. Among them, according to reports in the rebel stronghold of Benghazi, is one of Gaddafi's most senior soldiers, General Bilgasim Al-Ganga, said Al Jazeera's Sue Turton.
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"We're hearing reports that the number three in Gaddafi's army, Bilgasim Al-Ganga, has been captured overnight in fighting in Ajdabiya. He has a fierce reputation among the opposition who accuse him of committing many atrocities under the Gaddafi regime," our correspondent said.
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On Friday, western warplanes bombed Gaddafi's tanks and artillery outside the town to break the battlefield stalemate and help rebels retake the town.
Plumes of smoke filled the sky as the pace of coalition air strikes escalated, forcing terrified residents to flee Ajdabiya, which is 160km south of the rebel stronghold of Benghazi.
In Benghazi, Turton said the rebels now believed they had government forces "on the back foot".
"There is muted optimism. It really does feel the momentum of the Gaddafi forces has been stopped," our correspondent said. "They are not outwardly celebrating but they are definitely optimistic."
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'Focused mission' Meanwhile, Barack Obama, the US president, said Saturday that the military mission in Libya was succeeding.
"Because we acted quickly, a humanitarian catastrophe has been avoided and the lives of countless civilians - innocent men, women and children - have been saved," Obama said.
But Obama reiterated that the military mission was clear and focused and that the role of American forces had been limited.
"Our military has provided unique capabilities at the beginning, but this is now a broad, international effort... Key Arab partners like Qatar and the United Arab Emirates have committed aircraft. And as agreed this week, responsibility for this operation is being transferred from the United States to our NATO allies and partners.
"This is how the international community should work - more nations, not just the United States, bearing the responsibility and cost of upholding peace and security."
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Meanwhile, the African Union, which has rejected foreign intervention in Libya's affairs, said on Friday it plans to facilitate talks to help end the conflict.
"The AU action is ... aiming at facilitating dialogue between the Libyan parties on reforms to be launched to
eliminate the root causes of the conflict," the union's commission chairman Jean Ping told a meeting in Addis Ababa, Ethiopia.
He said that the process should end with democratic elections in Libya.
It was the first statement by the AU since the UN Security Council imposed a no-fly zone last week and a Western coalition began air strikes on Libyan military targets.
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