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Libya's parliament voted Prime Minister Ali Zeidan out of office on Tuesday after months of political infighting that has crippled the North African country, CNN reported.

The vote of no-confidence came after rebels in eastern Libya said a tanker loaded with oil from a port under their control escaped a naval blockade and moved into international waters.

The Libyan government said late on Monday that it had taken control of the North Korean-flagged tanker, Morning Glory, as it tried to leave the Al-Sidra port in eastern Libya, and after having briefly exchanged fire with rebels.

However, in a sign of the chaos and conflicting information typical for Libya, the rebels rejected the assertion.

Oil production, Libya's economic lifeline, has slowed to a trickle since the summer as armed protesters have seized oil ports and fields to press political and financial demands.

They are seeking a greater share of the country's oil revenue, as well as autonomy for eastern Libya.

The conflict over oil wealth is stoking fears Libya may slide deeper into chaos as the fragile government fails to rein in the armed brigades that helped oust Moammar Gadhafi in 2011 but now do as they please.

The removal of Zeidan, a liberal weakened for months by infighting with Islamists, deepens the turmoil in the country of 6 million people.

However, a crowd outside the Tripoli hotel where lawmakers had met to vote could be seen cheering as news broke of his dismissal, images broadcast on Libyan television showed.

"We have nothing personal against Zeidan, but his government has failed the people," one man said.