Concerns about the global supply of oil have pushed crude future prices in Tokyo to an almost 3-year high. Major oil producing countries have been slow to hike production while demand picks up pace.
Benchmark Dubai futures for February delivery rose above 50,000 yen per kiloliter on Monday for the first time since November, 2018. The price is about 450 dollars.
Oil producers in the US have been struggling to get facilities back online since they were damaged in a hurricane last month. Maintenance issues have also been a problem in other countries.
Meanwhile, demand is up as Europe increases stockpiles of oil and natural gas in preparation for winter.