UPDATE 8-Oil steady as Libya output decline offsets risks to Asian demand

* Rising COVID-19 cases in India and Japan raise demand
concerns
* Libya's oil production fell to about 1 million bpd
* U.S. unemployment claims fall to 13-month low
* ECB left policy unchanged, predicted rebound in the euro
zone
* OPEC+ set for meeting next week

(Adds closing prices)
By Scott DiSavino
NEW YORK, April 22 (Reuters) - Oil prices were little
changed on Thursday as concerns over lower crude production in
Libya offset expectations that rising coronavirus cases in India
and Japan would cause energy demand to decline.
Brent LCOc1 futures edged up 8 cents, or 0.1%, to settle
at $65.40 a barrel, while U.S. West Texas Intermediate (WTI)
crude CLc1 rose 8 cents, or 0.1%, to end at $61.43.
Libya said its oil production fell to about 1 million
barrels per day in recent days and could drop further due to
budgetary issues.
"The market realized that a global come-back in oil demand
cannot come without a come-back of the world's largest
economies," said Bjornar Tonhaugen, head of oil markets at
Rystad Energy, noting "India is diving deeper and deeper into a
major crisis with infections setting new records every day."
India, the world's third-largest oil user, on Thursday
reported the world's highest daily increase to date with 314,835
new coronavirus cases. Indian Oil Corp Ltd's (IOC) IOC.NS refineries are
operating at about 95% of their capacity, down from 100% at the
same time last month, two sources familiar with the matter told
Reuters.
Japan, the world's No.4 oil importer, is expected to
announce a third wave of lockdowns affecting Tokyo and three
western prefectures, media reported. Underlying bearish sentiment was also stoked by progress on
talks between Iran and world powers to resurrect the 2015
nuclear accord, PVM oil analyst Tamas Varga said. Analysts said
Iran has the potential to provide about 1-2 million barrels per
day (bpd) in additional oil supply if a deal is struck.

Any increase in supply from Iran would be on top of extra
barrels already expected from the Organization of the Petroleum
Exporting Countries and allies, including Russia, a group known
as OPEC+, which plans to bring back about 2 million bpd of
production over the next three months. OPEC+ members are due to meet next week but major changes to
production policy are unlikely, Russia's deputy prime minister
and OPEC+ sources said.
The European Central Bank, meanwhile, left policy unchanged
as expected, keeping copious stimulus flowing even as it
predicted a rebound in the euro zone economy in the coming
months as pandemic restrictions are lifted. In the United States, the number of Americans filing new
claims for unemployment benefits fell to a 13-month low last
week. But while the labor market recovery is gaining speed, red
flags are emerging in the housing market with sales of
previously-owned homes down to a seven-month low in March.
Longer term, oil demand is expected to take a hit as more
countries adopt policies to combat climate change.
The United States and other countries hiked their targets
for slashing greenhouse gas emissions at a global climate summit
hosted by President Joe Biden, an event meant to resurrect U.S.
leadership in the fight against global warming.
Biden unveiled the goal to cut emissions by 50%-52% from
2005 levels. Japan nearly doubled its target for cutting carbon
emissions to 46% by 2030.