Oil prices rose in early trading on Monday as investors assess the implications of President Joe Biden's decision to withdraw from the presidential race, while wildfires in Canada threaten some production in the country.

They are also watching for indications of a cycle of interest rate cuts in the U.S. that is expected to begin in September.

As of 0035 GMT, Brent crude prices rose by 48 cents, or 0.57 percent, to $83.10 per barrel. West Texas Intermediate crude futures increased by 42 cents, or 0.52 percent, to $80.55 per barrel, according to Reuters. The Federal Reserve is holding its meeting regarding interest rates on July 30 and 31, where investors expect the bank to maintain interest rates while looking for any signs of a rate cut this year.

On the political front, U.S. President Joe Biden announced his withdrawal from the presidential election race last Sunday after pressure from his Democratic colleagues, expressing his support for his vice president, Kamala Harris, the Democratic Party candidate for the election against Donald Trump in November. In Canada, a heatwave in Alberta has led to a surge in wildfires, which puts about 348,000 barrels per day of oil production at risk, according to Bloomberg.

The slower-than-expected economic growth in China, which reached 4.7 percent in the second quarter, raised concerns last week about the potential impact on oil demand in the country, while simultaneously continuing to exert pressure on prices.