Oil traders Monday were waiting to see whether a deal struck by Libya's government and rebels in the east of the country to reopen the Zueitina and Marsa al-Hariga oil ports would be implemented and eastern exports resume.

An agreement on reopening the ports, with a combined export capacity of 180,000 b/d, was signed at Zueitina on Sunday, the official Libyan News Agency reported.

Front-month Brent crude prices dipped on the news, though traders said Monday they were still waiting for evidence that shipments are actually set to restart.

"On the physical side, it's slightly too early to see any reaction," one trader said Monday.

"Certainly it is a step forward if it does flow," he said.

Analysts also remain skeptical, especially about whether the truce between the government and protesters would hold.

"The news seems fairly credible and is clearly bearish," said SEB Bank analyst Bjarne Schieldrop.

"Brent crude is selling off but market is still skeptical about the sustainability of the agreement," he said.

OTHER PORTS TO FOLLOW?

The accord was signed in the presence of Libyan Justice Minister Salah El-Marghani, Finance Minister Amraja Ghaith, Attorney General Abdelkader Radwan, National Congress member Sharif El-Wafi and representatives of the rebel organization that regard itself as the de-facto regional government of Libya's eastern Cyrenaica region.

The BBC cited Marghani as saying at a press briefing in Benghazi that the two eastern oil terminals were now in government hands.

Libya's two remaining and largest eastern oil terminals, Ras Lanuf and Es Sider, were due to reopen in coming weeks, he added.

Restarting those two ports would be the most significant breakthrough for Libya since the eastern terminals were first blockaded in July last year.

They have a combined capacity of 560,000 b/d.

"This is an interim agreement -- [Zueitina and Marsa al-Hariga] will start first, and then over the next two to three weeks, they will agree on [the other two ports]," the trader said.

Under the Zueitina deal, protesters are banned from returning or obstructing work at the ports, Marghani said.

International news agencies including the BBC and Al-Jazeera said the government had agreed to pay financial compensation to the rebels, drop legal charges against them and reverse its threat of a military crack-down in return for lifting of the blockade.

There was also reportedly a pledge from Tripoli to hold an inquiry into oil industry corruption as part of the deal.

The raprochement follows a failed attempt by eastern rebels in March to export crude independently of the government aboard a North Korean-flagged tanker.