South Sudan rebels say capture oil-producing state capital

JUBA (Reuters) - South Sudanese rebels said they had seized control of the capital of oil-producing Upper Nile state on Tuesday, an assault that the government said breached a ceasefire and which casts doubt over planned peace talks.

The rebel strike was the first attack on a major town since the January 23 ceasefire deal, but the government denied rebels now controlled Malakal, which lies on the fringes of a key oil-producing area in the country's north-eastern corner.