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Yes. OPA supports standard Web service integrations including submission of inbound data as XML and returning determinations (decisions) and decision reports (logical justifications or proofs substantiating the decisions) as XML. See more information on OTN regarding OPA at: http://www.oracle.com/technetwork/apps-tech/policy-automation/overview/index.html and additional information in the OPA developers guide on the Oracle Determinations Server component of OPA at: http://download.oracle.com/docs/html/E36316_01/toc.htm
By the way, Java command line launching web service client to read and transmit XML to local or remote multiithreaded webservice to consume and return XML with decisions returned to client to aggregate, write, etc. the results is certainly achievable. However, you may want to consider the possible advantages of staging the data in a database and leveraging the OPA Batch Processor for high-performance (both on the data read/write and processing levels). This alternative may prove higher performance overall and utilize more off-the-shelf components than direct reading/writing of XML as files from web service client software.