Fuel Shortage Sparks Global Economic Fears, Bitcoin at Risk

China and Russia have tightened fuel supplies in recent days, sparking concerns about global economic hardship. According to Reuters, China has told its refiners to stop any fuel exports in October, while Russia has extended its diesel export ban for 30 days.

The move is a response to the ongoing US-Iran war, which has already led to a shortage of oil on the global market. With fuel supplies dwindling, prices are expected to rise, pushing inflation and consumer prices even higher. This could give the US Federal Reserve more reason to increase interest rates on October 28.

Meanwhile, PetroChina, the state oil giant, has already cancelled several October cargoes of gasoline and jet-fuel. The Chinese government is prioritizing domestic supply security over international markets, according to Michal Meidan, head of China energy research at the Oxford Institute for Energy Studies.

The situation is further complicated by Russia's damaged refining capacity due to Ukrainian drone strikes. Iran, meanwhile, has reportedly loaded zero crude oil onto tankers in September, as part of the US government's efforts to cut off its revenue streams.