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Libyan oil returning to market?

Libyans stand on a destroyed tank belonging to leader Moamer Kadhafi forces celebrating at the west gate of Ajdabiya on March 26, 2011, as Libyan rebels seized control of this strategic city marking their first significant victory over Colonel Kadhafi's forces since the launch of the Western-led air strikes a week ago. UPI\Mohamad shukhi.
Libyans stand on a destroyed tank belonging to leader Moamer Kadhafi forces celebrating at the west gate of Ajdabiya on March 26, 2011, as Libyan rebels seized control of this strategic city marking their first significant victory over Colonel Kadhafi's forces since the launch of the Western-led air strikes a week ago. UPI\Mohamad shukhi. | License Photo

LONDON, April 5 (UPI) -- The Libyan opposition expects to ship about 1 million barrels of oil, possibly to Qatar, from a terminal in the rebel-held east, a shipping tracker said.

Libyan oil is shuttered by conflict pitting Western powers against fighters loyal to Libyan leader Moammar Gadhafi. International oil companies shut down production early this year, a move that helped push oil prices to post-recession highs.

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Michelle Wiese Bockmann, a market editor for shipping news service Lloyd's List, told the BBC a tanker was ready to dock at the rebel-held oil terminal at Marsa al Hariga in eastern Libya.

"The significance is not only that this is the first shipment in 18 days but it is also a signal that Libya is open to international trade and shipping," she said. "It will send a message to other tanker owners."

Bockmann said the first shipment would likely head to Qatar and the oil would be marketed to Italy, which Monday joined a growing list of countries recognizing the Libyan opposition as the legitimate leader of Libya.

Western sanctions on Libya target the country's oil industry but exports are allowed so long as the Gadhafi regime doesn't profit from the sales.

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