First word of caution: NEVER use oil on rubber seals. It makes them swell and ruins them. Use silicone-based products only. This goes for hoses and everything!
And, that seal around the edges of the glass is not to prevent the water from coming in. It HELPS, but it's not the only thing. We have a drain pan in our roof and four drain holes with hoses leading to drains so the water can drain out (and trust me, it does).
My 97 prelude seal needs a little silicone every so often as it pops up and out rather than going in. Same situation here.
Now just clean that oil off of that seal with some dish soap and water and then silicone spray it.
Good job and good luck!
Mike