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A controversial admission by Libya Dawn leader ‘Umar al-Hasi raises the specter of oil money flowing to terrorist groups.
Political tensions in Libya are rising, threatening to draw the oil sector further into a conflict between an Islamist movement and the elected government, a development that might result in renewed sanctions on Libyan oil sales.
As clashes between forces loyal to the government and Jihadists continued in Benghazi, the head of a self-proclaimed Islamist government in Tripoli admitted to fighting alongside Ansar al-Sharia, a militia outfit declared a terrorist group by the UN this week. The admission threatens a new round of oil sanctions that would prolong the outage of key oil fields and keep production languishing well below recent highs.
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