Gaddafi running out of both fuel and cash: US intelligence

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Libyan leader Colonel Muammar Gaddafi is facing dramatic fuel and cash shortages, according to latest US intelligence reports.

US intelligence claims Gaddafi will run out of fuel within a month. The cash shortage in Libya follows Turkey's move last week to seize hundreds of millions of dollars held in the Arab Turkish Bank, Sky News quoted American officials, as saying.

While Gaddafi could not access actual cash, he had been issuing letters of credit to pay his debtors, including fuel importers, the officials said.

Intelligence analysts are pointing to the collection of indicators, including territory seized and looming fuel and money shortages, as the first shift from stalemate to momentum for the rebels since the conflict began in mid-March.

Word of the building pressure against Gaddafi came as French Foreign Minister Alain Juppe reported that the dictator could leave power, citing Libyan emissaries who have approached the French government.

It was not immediately clear how credible the offer was and Gaddafi has refused to leave or give up power since US and Nato forces launched a bombing campaign in support of rebels who rose up against a bloody crackdown against anti-government protests.

Meanwhile, the rebels have already moved into the city of Kikla, southwest of Tripoli.