Crude oil futures dropped Monday on OPEC announcement that the cartel is about to boost output by another 500,000 barrels per day from next month to help build oil stockpiles ahead of a projected rise in demand in the second half-year. The increase would take supplies to 28.5 million bpd in May from approximately 28 million bpd at the moment.

May crude oil futures fell $0.50 to $52.82 a barrel.

"I believe, as Kuwait, the market will dictate an extra 500,000 (in May) in preparation for the third quarter," said Sheikh Ahmad al-Fahd al-Sabah, the cartel’s president and Kuwait’s oil minister, speaking at Parliament. "This will be a hike in actual production."

In the wake of Greenspan’s predictions that oil prices are in for a fall to about $50, analysts differ on the future direction of oil futures.

"Prices are volatile but still well above $50 on both sides of the Atlantic," said oil analyst Peter Kemp, according to the Web site. "The slight slippage of recent days was more of a reality check than a correction, in recognition of the build in inventories that will occur in the second quarter."

Trilby Lundberg’s survey of 7,000 gas stations around the U.S. shows a 19 cents increase to $2.32 per gallon in the average retail gasoline price. The price for self-serve regular was $2.29 a gallon on average. She says prices rise on high refinery costs and surging crude costs, although gas prices may be approaching a peak.