Global growth concerns reemerged in the financial markets, which poses a threat for the current upside attempts.
Chinese industrial profits contracted 14% y/y in February, much softer than the -1.9% outcome in January. This signal may yet emerge as another worry for traders. Apart from that, the RBNZ became the latest central bank to warn about a slowdown in global economy, while the latest economic data from the US add to recession worries.
Against this backdrop, risk aversion may intensify in the short term, which is negative for commodities. Also, dollar demand remains rather robust amid risk-off sentiment and weakness in the European currencies. But should the EIA report come out as bullish, Brent could derive some short-term support from the official release.