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The U.S. raised its forecast for domestic oil production next year after the recent surge in prices due to supply disruptions from key Middle East countries.

The U.S. oil futures rally took another move higher, sending prices to their highest in about 20 months as investors price in a prolonged war in the Middle East that could upend crude flows.

Airlines and other large fuel buyers have been loading up on oil derivatives contracts in recent days to keep their bills from spiraling as the U.S.-Iran war pushes prices to multiyear highs.

Oil producers jumped on a chance to lock in prices for future sales as the crude market soared, opening a window that had been scarce before the U.S. and Israel launched strikes on OPEC member Iran. 

Chevron has finished discharging a cargo from the vessel Searuby and is in the process of unloading ship Canopus Voyager, according to Bloomberg tanker tracking.

The wager reflects growing sentiment among some of the world’s most prominent energy forecasters that the oil market will be oversupplied by the end of the year.

A flurry of bets on Brent crude falling below $60 a barrel this year changed hands recently, a sign investors are hedging against the risk of another large production hike from OPEC and its allies.

Money managers turned the most bullish on diesel in four weeks after Fed Chair Jerome Powell signaled openness to a rate cut last month.

The U.S. sees domestic crude production declining next year for the first time since 2021 in a blow to President Donald Trump’s push for American energy dominance.

The U.S. reversed its forecast for a crude glut next year and is now calling for a small oil-market deficit.