Rebels are coming under increasing pressure from Gaddafi forces Leaders of the EU's 27 member states have said Libya's Col Muammar Gaddafi must surrender power.
The EU is holding an emergency summit in Brussels in the hope of finding a common approach to the political and humanitarian crisis.France has urged other states to follow it in recognising the rebel's interim council, but has so far failed to gain wider support.
The summit comes as forces loyal to Col Gaddafi continue to make gains.
There have been more airstrikes on the oil port of Ras Lanuf, with reports of a refinery being hit as well as a residential area. Rebels had earlier reported government forces entering the city by boat and in tanks.
The town has been held by anti-Gaddafi forces for several days and rebels still reportedly control the inner city and residential areas.
Western journalists in the city of Zawiya, west of Tripoli, have confirmed the Gaddafi regime's claims that the city has fallen after days of bombardment. A rebel fighter in Zawiya told Reuters they were all but cut off from the rest of the world.
Reuters also reported strikes at the nearby town of Uqaylah and another bombing further east near Brega.
No-fly debate As he arrived at the summit, European Commission President Jose Manuel Barroso told reporters: "Regarding Libya, the problem has a name: Gaddafi. He has to go."
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End QuoteThe problem is that Gaddafi is unlikely to be swayed by words. Europe has already played some of its best cards”
Mr Barroso said the EU would "explore all the possibilities for that to be achieved in full respect of international law and also working in close co-operation with our allies and partners in the region".
German Chancellor Angela Merkel said it "must be totally clear that somebody who wages war against his own people is no partner for talks with the European Union. Therefore we demand Gaddafi's immediate resignation". Mrs Merkel said the EU must ensure it sends a united signal, as division would "only play into Gaddafi's hands".
UK Prime Minister David Cameron also said it was important to show unity.
But divisions were certainly evident over whether to follow France in recognising the authority of the Libyan National Council, the interim authority set up by rebels in Benghazi.
Dutch Premier Mark Rutte described it as a "crazy move" which contradicted normal diplomatic practice.
Germany's foreign minister, Guido Westerwelle, said he wanted to learn the views of the Arab League, which meets on Saturday "before we in Europe once more form our own definitive opinion before everyone else".
The African Union has reiterated its rejection of any idea of foreign military intervention in Libya.
British and French leaders wanted the summit to draw up plans to prepare to help the Libyan rebellion, including the possibility of imposing a no-fly zone over Libya.
This would prevent pro-Gaddafi troops launching from the air, currently the primary advantage the regime's troops have over the rebels.
On Thursday, Nato defence ministers discussed a no-fly zone but decided more planning was needed.President Sarkozy also said France and Britain were "open" - if there was UN and Arab League backing - to "defensive" air strikes against Gaddafi's forces if they used chemical weapons or warplanes to target the civilian population.
This has not been confirmed by the UK government.
BBC Europe editor Gavin Hewitt says there remains, both in Europe and Washington, great caution about this but the credibility of the EU may be at stake if it cannot agree at the summit.
Civil war Thousands of people gathered in Benghazi after Friday prayers outside the courthouse, which has become the headquarters of the rebel council.
The BBC's Pascal Harter in the city said vast crowds of people wearing the colours of the old Libyan flag were on the streets.
The head of the council, Mustafa Abdel Jalil, told the BBC the rebels needed not only a no-fly zone but a sea embargo, weapons, and humanitarian assistance for the cities which have been besieged by Col Gaddafi's forces.
In a TV interview on Thursday, Col Gaddafi's son Saif al-Islam warned rebels in Benghazi that government troops were on their way.
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Saif al-Islam Gaddafi: "This is our country. We will never ever surrender"
- Gulf Arab states said the Gaddafi regime was illegitimate, and urged that contact be made with the rebels
- US President Barack Obama's top intelligence adviser James Clapper predicted government forces would defeat the rebels
- The BBC News website appears to have been blocked by the Libyan authorities
- The International Committee of the Red Cross said that Libya had now descended into civil war
The Libyan Investment Authority (LIA) wealth fund holds about $70bn (£43bn) and has stakes in a number of large European companies.
Hungarian Foreign Minister Janos Martonyi, whose country currently holds the EU's rotating presidency, said on Friday that extra sanctions could include freezing the assets of Libyan oil and gas producer and exporter companies.
http://www.bbc.co.uk/news/world-europe-12711162
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