* OPEC supply rises for third consecutive month
* Tropical Storm Edouard threatens oil and gas
infrastructure in Gulf of Mexico
* Tension over Iran nuclear programme
* Gunmen kidnap two French expatriates in Niger Delta
(Updates prices, adds quote)
By Ikuko Kao
LONDON, Aug 4 (Reuters) - Oil fell towards $124 a barrel on
Monday, slightly pressured by evidence of rising OPEC output,
but supported by worries about supply disruption as a tropical
storm threatened facilities in the U.S. Gulf of Mexico.
Concerns about OPEC producer Iran's nuclear programme also
underpinned the market.
U.S. light crude <CLc1> was trading $1.10 lower at $124.00
by 1230 GMT. London Brent crude <LCOc1> dipped by 85 cents to
$123.33.
Prices have recovered from a low hit last week of $120.42,
the weakest since early May and far below the record of $147.27
struck on July 11.
They reached a session high of $126.35 early on Monday
before easing slightly after a Reuters survey showed OPEC supply
rose for a third consecutive month in July mainly because of
increased output from the world's top exporter Saudi Arabia.
The modestly bearish impact was countered by Tropical Storm
Edouard, which formed near a major oil and gas producing area of
the northern Gulf of Mexico on Sunday, the U.S. National
Hurricane Center said.
"The OPEC production is creeping up," Christopher Bellew
with Bache Financial said. "A potentially bullish factor is the
storm, but it is not strong enough to disrupt supply yet."
The storm was expected to come ashore at close to hurricane
strength in a few days on the Texas coast.
Oil firms, including Royal Dutch Shell <RDSa.L> and
ExxonMobil Corp <XOM.N>, said on Sunday production was
unaffected so far, but they were preparing for possible
evacuations of workers and temporary output shutdowns.
Traders were also nervous supplies could be disrupted as a
result of tension between the West and the world's fourth
largest oil producer Iran.
Iran and the representative of six world powers talked by
telephone on Monday about Tehran's disputed nuclear programme,
but the Islamic Republic said it would press ahead in spite of a
demand to halt the work.
Tehran failed to meet Saturday's informal deadline to
respond to a package of incentives offered by the six powers.
Oil supplies have already been disrupted from Nigeria, the
world's eighth largest oil exporter, as a result of militant
attacks that have cut about a fifth of its production.
Gunmen kidnapped two French expatriates near the country's
oil industry hub of Port Harcourt in the restive Niger delta,
military and security sources said on Sunday.
(Reporting by Fayen Wong in Perth and Ikuko Kao in London;
editing by James Jukwey)
