U.S. crude oil extends gains, trades above $79 as Department of Energy sees supply deficit

OPEC maintained robust oil demand and economic growth forecasts.U.S. crude oil rose more than 1% Wednesday, extending this week's rally as OPEC and the Department of Energy see steady demand this year.growth forecast to 1.1 million barrels per day, or bpd, up from a previous forecast of 900,000 bpd. The increased demand implies a supply deficit with world production expected to rise 800,000 bpd in 2024.

"In the short term, the oil market is likely to tighten," Martijn Rats, commodity strategist at Morgan Stanley, told clients in a note. The investment bank sees a 1.2 million bpd deficit in the third quarter, which could push Brent prices to $86 per barrel.OPEC, meanwhile, stuck to its demand growth forecast of 2.2 million bpd on solid global economic growth of 2.8% this year.

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