UPDATE 7-Oil slips further on Europe demand concerns, U.S. stock build

* U.S. crude stockpiles up for 4th week despite refinery
boost-EIA
* IEA says demand won't reach pre-pandemic level until 2023
* No policy shift expected by U.S. Federal Reserve

(Adds EIA data, comments, updates prices, changes dateline,
previous LONDON)
By Devika Krishna Kumar
NEW YORK, March 17 (Reuters) - Oil slipped for a fourth day
on Wednesday weighed by concerns about weaker demand in Europe
and rising U.S. crude inventories.
Several European countries have paused the use of
AstraZeneca (NASDAQ:AZN)'s COVID-19 vaccine on worries over possible side
effects. Germany is seeing rising coronavirus cases, Italy is
imposing a nationwide Easter lockdown and France plans to impose
tougher curbs.
"The suspension will not do the bloc's economic and fuel
recovery any favours," said Stephen Brennock of oil broker PVM.
"The hope now is that Europe can get its sluggish vaccine
rollout back on track."
Brent crude LCOc1 was down 91 cents, or 1.3%, at $67.48 a
barrel by 11:38 a.m. EDT (1538 GMT,) while U.S. West Texas
Intermediate (WTI) crude CLc1 dropped 87 cents, or 0.9%, to
$63.93.
Prices slipped towards session lows after government data
showed U.S. crude inventories rose 2.4 million barrels last
week, following Tuesday's industry report estimating a 1 million
barrel-drop. Analysts had forecast an increase of 3 million
barrels. API/S
U.S. crude inventories have risen for four straight weeks
after refinery operations in the south were hampered by unusual
and severe cold weather last month. Companies are slowly
restarting facilities and balances are expected to restored over
the next couple of weeks, analysts said.
"Over three-quarters of last week's 1.1 million
barrel-per-day increase in refinery runs occurred on the Gulf
Coast. Another rise in refining activity in next week's report
should usher us back to a trend of inventory draws," said Matt
Smith, director of commodity research at ClipperData.
Further adding pressure to prices, the International Energy
Agency said in its monthly report that oil prices are unlikely
to mount a dramatic and sustained surge despite vaccines
expected to boost demand later this year. The Paris-based energy
watchdog said demand is not expected to return to pre-pandemic
levels until 2023. "IEA's report has triggered action among oil traders," said
Naeem Aslam of Avatrade. "We have seen some selling."
Oil has recovered from historic lows reached last year as
demand collapsed, buoyed by record oil output cuts by the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies. Brent reached $71.38 on March 8, its highest since Jan.
8, 2020.
A rising dollar ahead of the U.S. Federal Reserve's
announcement was also a headwind for oil because a stronger
dollar makes crude more expensive for holders of other
currencies. USD/ .DXY
Investors are also looking to the results of the central
bank's Federal Open Market Committee meeting. No policy shift is
expected.