Europe Distillates — Diesel profit margins spike on Middle East escalation

LONDON, Oct 13 (Reuters) — Diesel refining profit margins rose nearly 9% on Tuesday as escalating conflict between Saudi Arabia and Yemen's Houthi movement heightened concerns over further disruptions to Middle East fuel supplies. Low-sulphur gasoil futures traded at $82.15 a barrel above Brent crude futures LCOc1 by 1639 GMT, $6.84 higher than the previous close ExxonMobil bought a ULSD cargo from Mercuria for Amsterdam delivery during the afternoon trading window Vitol sold Trafigura a high-sulphur gasoil cargo for loading in La Pallice, France Yemen's Iran-allied Houthis said that Saudi Arabia was attacking the Yemeni capital Sanaa on Tuesday after a Saudi-led coalition warned civilians to stay away from an oil depot on the city outskirts US President Donald Trump defended a deal involving Russian diesel that has drawn criticism from US lawmakers, who say it appears to violate restrictions on Russian energy imports imposed after Moscow's invasion of Ukraine Asked by reporters whether the proceeds could help fund Russia's war effort, Trump did not answer directly, saying the diesel was "being released into the world" rather than to the United States BP saidon Tuesday its third-qu