Aramco Reportedly Tells European Buyers It Doesn’t Have Crude For Next Month. Oil Reversed All Losses.

Saudi Aramco told European buyers it doesn't have crude shipments for next month after its exports got severely disrupted on different fronts, according to a new report.

Citing people familiar with the matter, Bloomberg detailed that deliveries from the term contracts signed between Riyadh and the customers won't take place next month.

Oil prices are rising on the heels of the report. Brent crude, the international benchmark, had fallen to about $101.6 a barrel early in the morning, but reversed all gains and now hovers around $105, edging up 0.14% at 10:32 a.m. ET. West Texas Intermediate, the U.S. benchmark had briefly gone back below $100 a barrel. It has now climbed 1.36% and clocked in at $103.30 at the same time.

Riyadh said this week it now expects to resume partial pumping in a matter of days, according to another report.

A person familiar with the matter told Bloomberg that Saudi Aramco is working to bypass a damaged region soon, and to return to full capacity in about six weeks. The pipeline transports about 4% of global oil supplies.

Iran is preventing most ships from transiting through the Strait of Hormuz, and the Houthis have declared an embargo of Saudi oil in the Red Sea, targeting its ships in the waterway and striking energy infrastructure.

The Houthis also reached the island of Perim in the Bab el-Mandeb Strait earlier this month, a breakthrough that could help the group tighten its grip on the key shipping lane.

Another report detailed that China asked Iran to rein in Yemen's Houthis after getting a request from Saudi Arabia.

According to Reuters, Beijing asked Tehran to use its influence on the Houthis to prevent the conflict from spreading further as it threatens more global export hubs.

It did not detail the way in which China conveyed the message, but Iranian Foreign Minister Abbas Araghchi visited China this week and met with his counterpart Wang Yi.

Responding to a request from the outlet, the Chinese foreign ministry said "China does not wish to see regional tensions further spill over into Yemen and the Red Sea. Escalating regional instability is not in the interests of ​any party".

At the same time, Washington officials reportedly met with Houthi representatives, who told them that they won't target U.S. or Israeli ships.