Japanese oil refiners will diversify supply sources while exploring ways to support Middle Eastern producers, including pipeline expansion projects that bypass the Strait of Hormuz, the head of an industry group has said, Reuters reports.

Middle Eastern producers, including the UAE and Saudi Arabia, have asked the Japanese government to participate in or support plans to expand oil pipelines to bypass the strait, Shunichi Kito, president of Petroleum Association of Japan, says, adding that US crude is one diversification option.

But given the current configuration of Japanese refineries, which are better suited to Middle Eastern grades, it is difficult to handle large volumes of US crude at present, Kito says.

Drawing lessons from the Iran crisis, the oil industry will seek to strengthen supply chains by deepening ties with oil-producing countries, securing tanker capacity and improving refinery flexibility, Kito has said.