Oil up on Monday’s opening

Oil prices rose after a nearly 3 per cent drop on Friday, influenced by President Joe Biden’s decision not to seek reelection and wildfires in Canada.

Brent crude approached $83 a barrel, while West Texas Intermediate (WTI) neared $81. Biden endorsed Vice President Kamala Harris amid concerns about defeating Donald Trump, causing the US dollar to ease in Asian trading and benefiting dollar-priced commodities.

Wildfires in Alberta risk approximately 348,000 barrels of daily oil production. Oil prices have increased this year due to OPEC+ output cuts and geopolitical tensions, including Israel’s war on Gaza and clashes with Houthi groups, raising concerns over supply disruptions.

Market conditions remain tight, with Brent’s prompt spread widening to over $1 a barrel, indicating a bullish trend.

Attribution: Bloomberg