AP CANCUN, Mexico: Tropical Storm Dolly unleashed showers on Mexico's Yucatan Peninsula as it sped toward the Cancun area Sunday. A tropical storm warning

By Fayen Wong PERTH, July 21 (Reuters) - Oil rose towards $130 a barrel on Monday after its biggest one-week slide on record as inconclusive talks between Iran and world powers over Tehran's disputed nuclear programme dimmed prospects of ending the row.
Prices were also lifted by worries about Tropical Storm Dolly, the first storm of the 2008 Atlantic hurricane season that could disrupt oil production in the Gulf of Mexico.
meeting with Iran was quite a disappointment and was the main factor in the lift in oil prices this morning," said David Moore, a commodities analyst at the Commonwealth Bank of Australia in Sydney.

By Gavin Evans July 21 (Bloomberg) - Crude oil rose from a six-week low in New York on speculation diplomatic tensions with Iran may escalate after the world's fourth-largest oil producer resisted United Nations demands that it suspend nuclear research.
Iran risks ``further isolation'' if it doesn't respond in two weeks to the UN offer of economic aid in exchange for a temporary halt in uranium enrichment, U.S. officials said July 19. Oil also rose after U.S. forecasters said there is a 29 percent chance a storm approaching Mexico may strengthen to a hurricane after it enters the Gulf of Mexico.
el demand.

By Fayen Wong PERTH (Reuters) - Oil rose over $1 to top $130 a barrel on Monday after inconclusive talks between Iran and world powers over the weekend over Tehran's disputed nuclear programme.
Prices were also lifted by worries about Tropical Storm Dolly, which was heading for Mexico's Yucatan Peninsula, but posed no immediate threat to Gulf of Mexico oil installations slightly south of its projected path.
urther isolation".

HOUSTON - The year's fourth named tropical system has formed in the Caribbean and could affect Houston's weather in the coming days, KPRC Local 2 reported Sunday.
Tropical Storm Dolly was 125 miles southeast of Cozumel, Mexico, with maximum sustained winds of about 45 mph at 7 p.m. It was at 19.3 north and 85.5 west, moving northwest at about 14 mph.

ATLANTA, July 20 (Reuters) - Tropical Storm Dolly, the fourth such storm of the 2008 Atlantic hurricane season, formed in the western Caribbean Sea on