Oil extends gains after closing at fourmonth high on Thursday
IEA raised demand growth forecast and lowered supply projection
U.S. producer prices rise, consumer spending falls

LONDON, March 14 Reuters Oil prices rose on Thursday as investors digested the International Energy Agency39;s IEA latest oil market report in which it predicts a tighter market in 2024 as well as fresh U.S. economic data.

Brent crude futures for May rose 70 cents, or 0.83, to 84.73 a barrel by 1346 GMT. U.S. West Texas Intermediate WTI crude for April was up 88 cents, or 1.1, at 80.60.

Brent futures had settled above 84 a barrel for the first time since November on Wednesday, with both contracts chalking up gains close to 3.

Brent39;s intraday high of 84.87 on Thursday marked its highest since Nov. 7.

The IEA raised its 2024 demand growth forecast by 110,000 bpd from its previous report but warned that the global economic slowdown acts as an additional headwind to oil use. The agency now expects overall demand growth to slow to 1.3 million bpd this year after growth of 2.3 million bpd last year.

Whilst the IEAs view on global oil balance is still more than a country mile away from OPECs prognosis, this report does nothing to dent the developing upbeat mood, said PVM analyst Tamas Varga.

The IEA also cut its 2024 supply forecast and now expects oil supply to rise by 800,000 bpd to 102.9 million bpd this year.

Upward revisions on demand growth and lower supply growth estimates result…