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Market Chatter: Japan Refiners Seek Supply Options Amid Middle East Ties

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Japanese refiners plan to diversify crude sources while supporting Middle Eastern pipeline projects that bypass the Strait of Hormuz, Reuters News reported on Wednesday, citing the president of Petroleum ⁠Association of Japan (PAJ) Shunichi Kito.

Kito, also the chairman of refiner Idemitsu Kosan (TYO:5019), said it is vital to create alternatives to Hormuz transit rather than simply replacing Middle Eastern oil, the news wire said.

He expects an August government energy package to boost supply stability and competitiveness, while past crises will drive supply-chain upgrades via producer ties, tanker capacity, and refinery flexibility, the publication said.

Kito did not address potential naphtha stockpiling, as the UAE and Saudi Arabia pursue pipeline expansions to boost export capacity, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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