Oil edged higher — after slumping almost 3% on Friday — as investors weighed the fallout from President Joe Biden’s decision not to seek reelection, while wildfires menaced some production in Canada. Global benchmark Brent traded near $83 a barrel after posting its biggest one-day drop since early June, while West Texas Intermediate was below $81. Biden abandoned his bid for a second term as concern mounted he couldn’t beat Donald Trump, and endorsed Vice President Kamala Harris. The dollar declined, benefiting commodities priced in the currency.

In Canada, a blast of heat across the Alberta oil patch has triggered a wave of wildfires. An estimated 348,000 barrels a day of production are at risk, according to Alberta Wildfire and Alberta Energy Regulator data.

Oil has pushed higher this year as OPEC+ reined in output, setting the scene for a drawdown in global stockpiles over the Northern Hemisphere summer. Geopolitical tensions have also been to the fore, with Israel’s war against Hamas and clashes with Iranian-backed groups including the Houthis in Yemen sparking concerns of regional instability that could threaten supply.

Israel struck targets around the Houthi-held Red Sea port of Hodeidah over the weekend, in retaliation for a drone attack on Tel Aviv. The airstrikes were aimed at facilities including fuel-storage sites, with a Houthi-run television channel showing flames and smoke raging at the installations it said were hit.

Market metrics point to tight near-term conditions. Brent’s prompt spread — the difference between its two nearest contracts — was $1.06 a barrel in backwardation, a bullish pattern. Two weeks ago, the gap was 76 cents.