UPDATE 10-Oil drops from one-mth highs on demand fears as virus surges in India

* India PM speaks of virus 'storm' overwhelming country
* Libya declares force majeure on Hariga port
* U.S. crude stocks seen 3 mln bbls lower last week -poll
* Coming Up: API oil inventory report, 4:30 p.m. EDT (2030
GMT)

(Adds settlement prices, commentary, India infections; updates
U.S. inventory forecast)
By Laura Sanicola
NEW YORK, April 20 (Reuters) - Crude futures settled lower
on Tuesday, pulling back from one-month highs, on fears that
India, the world's third-biggest oil importer, may impose
restrictions as coronavirus infections and deaths surge to
record highs.
Oil prices have risen steadily this year on anticipation
that demand would recover, but while the United States and China
are rebounding, numerous other countries are not. "Unless major progress is seen beyond the key industrialized
nations such as the U.S., the pandemic factor could require some
downward adjustments in global oil demand expectations for this
year," said Jim Ritterbusch, president of Ritterbusch and
Associates in Galena, Illinois.
India, the world's second most populous country and
currently the hardest hit by COVID-19, reported its worst daily
death toll on Tuesday, with large parts of the country now under
lockdown amid a fast-rising second surge of
contagion. India's Prime Minister Narendra Modi urged citizens to take
precautions to halt the spread of COVID-19, but stopped short of
imposing lockdowns. Restrictions continue to hamper travel worldwide. Hong Kong
will suspend flights from India, Pakistan and the Philippines
from April 20 for two weeks. Brent crude LCOc1 settled down 48 cents, or 0.7%, at
$66.57 a barrel. During the session it reached its highest since
March 18 at $68.08. U.S. West Texas Intermediate (WTI) crude
CLc1 fell 94 cents, or 1.5%, to $62.44.
Crude prices rallied earlier in the session after Libya
declared force majeure on exports from the port of Hariga and
said it could extend the measure to other facilities, citing a
budget dispute.
Hariga is scheduled to load about 180,000 barrels per day
(bpd) in April. Libya's production was hit last year after
eastern-based forces in that country's civil war blockaded oil
terminals.
Overall, oil prices have recovered from historic lows last
year spurred by the onset of the pandemic, helped by some demand
recovery and huge output cuts by the Organization of the
Petroleum Exporting Countries and its allies, known as OPEC+. A
year ago today, WTI sank to minus-$40 due to a massive glut.
U.S. crude stockpiles were expected to have dropped for a
fourth week in a row, falling by about 3 million barrels last
week, according to analysts in a Reuters poll. EIA/S
Industry data from the American Petroleum Institute will be
released at 4:30 p.m. EDT (2030 GMT), followed by the
government's report on Wednesday. API/S