U.S. approves oil purchases from Libya

WASHINGTON, April 27 (UPI) -- A division of the U.S. Treasury Department said it approved transactions related to oil exported from the rebel-backed Transitional National Council of Libya.

The U.S. Office of Foreign Assets Control said transactions involving Qatar Petroleum or international oil trader Vitol and the TNC are permitted provided the entity in Libya is under the control of the rebel-backed leadership.

Anyone dealing with Libyan oil purchases must supply a report to the U.S. government detailing the arrangements within 30 days to ensure the deal doesn't violate sanctions imposed on Libya, OFAC added.

Oil prices soared in February when the unrest in Libya began and have remained at post-recession highs as the conflict continued. Italy and Qatar are among the countries that have secured arrangements to acquire oil from rebel-controlled Arab Gulf Oil Co.

Libya was one of the top oil-producing countries in Africa before the international military intervention began last month.

Meanwhile, U.S. President Barack Obama has issued an executive order that permits up to $25 million in "non-lethal commodities and services" from any agency in the U.S. government to support the TNC "in efforts to protect civilians and civilian populated areas under threat of attack in Libya."