Japan Petroleum Association President Shunichi Kito said on Monday that North America was a potential source of alternative crude oil for Japanese refiners. Ecuador, Colombia, and Mexico were also considered as options. Oil buyers around the world are looking for alternatives to the tankers that have been stuck in the Gulf due to the U.S./Israeli war against Iran and the subsequent closure of Strait of Hormuz.

Kito, a Japanese oil company representative, said at a recent press conference that the companies were exploring options to procure from various countries. They may also send vessels there.

He said that the procurement of crude oil is the highest priority, despite rising freight rates and insurance costs.

The Strait of Hormuz remains closed, which is a major supply route for oil and LNG around the world. Oil prices have risen to over $100 per barrel. The U.S. has been trying to'soften the crisis by reducing oil supply. The administration of President Donald Trump has temporarily lifted sanctions on the purchase and sale of Russian and Iranian oil that is stranded in the sea.

Kito, the Kito spokesperson, said that Japan does not plan to import oil from Iran and Russia in the near future other than for Sakhalin 2.

Kito, chairman of Japanese oil refiner Idemitsu, also said that the crisis was an opportunity to diversify Japan's supply sources on the long-term.

He said that Japan, which imports 95 percent of its oil from Middle East, should invest in crude oil production in Alaska in order to diversify the supply.

Kito, who spoke after Japan began to tap its reserves last week, said that if the Iran crisis persists, the Japanese government should also consider a second release of oil from 'its strategic stockpiles, on a scale similar to the first. Fatih Birol, the Executive Director of the International Energy Agency (IEA), said that it is in consultation with governments from?Asia & Europe regarding the release of additional oil stockpiled. Reporting by Yuka?Obayashi, Writing by Katya?Golubkova, Editing by Chang -Ran Kim and Thomas Derpinghaus

(source: Reuters)