Oil prices are steadily losing their last week’s gains closing at around $54 a barrel Monday on the New York Mercantile Exchange on the market’s growing confidence that the OPEC supply might be sufficient to meet demand for the time being. Analysts expect priced could fall to as low as $50 a barrel.

Today May crude oil futures fell $0.11 to $53.94 a barrel.

Last week crude oil futures gained 2% on the blast at BP Texas refinery. The exlosion rocked the facility in the plant accounting for 3% of the US gasoline output.

The Government stockpile report due on Wednesday are projected to show a 2 million to 3 million barrel buildup in crude stocks.

"U.S. crude stocks have recently been on the rise and providing even more crude oil (via OPEC) won’t necessarily solve the U.S. gasoline refinery conundrum," said Mike Fitzpatrick, an energy analyst at Fimat. "In fact, late last week it was reported that OPEC’s eastbound export flow reached year-high, which has to add to the current negative outlook the market has adopted."

the cartel is discussing a possibility of the second rise in output in addition to the 500,000 bpd increase agreed on March 16.

This would raise OPEC output to 28 million barrels a day as early as April in an attempt to offset demand growth by 2.2% predicted by the International Energy Agency for this year.