However after heavy losses last week that were linked to fears of slowing global growth and lowering demand, oil prices remained far below the record highs of about $147 per barrel that were struck earlier this month.
Brent North Sea crude for September delivery added $1.71 to $131.90 in morning London trade.
New York's main contract, light sweet crude for August delivery, rose $1.2 to $130.50 a barrel.
"Oil prices were up partially on the back of the weather concerns as we saw the first tropical storm of 2008 in the Atlantic," said Sucden analyst Michael Davies.
The hurricane season, which began in June and lasts until the end of November, had been largely uneventful until now.
"Tropical storm Dolly was heading for Mexico's Yucatan Peninsula and this has served as a reminder that there remains a threat to oil and gas facilities in the Gulf of Mexico while we remain in the hurricane season," added Davies.
"However, at the moment the US National Hurricane Centre is expecting the storm to pose no immediate threat."
The most hurricane-prone US region is the southeastern coastline, running from the states of North Carolina to Texas.
Meanwhile, weekend talks in Geneva aimed at convincing crude producer Iran to halt its nuclear programme made little progress, dealers said.
