Crude oil futures fell for a second day Tuesday as traders speculated that production would increase after Saudi Crown Prince Abdullah met and talked with US President George W. Bush.

On the New York Mercantile Exchange, light, sweet oil futures for June delivery fell 37 cents to end at 54.20 dollars a barrel, meanwhile, on London's International Petroleum Exchange the June Brent oil futures contract dropped 26 cents to settle at 54.14 dollars.

President Bush and Saudi Crown Prince Abdullah were discussing oil policy at meeting yesterday. Traders believed that the meeting could lead Saudi Arabia to further raise oil production. Saudi Arabia was the largest producer in the Organization of Petroleum Exporting Countries (OPEC), and it might raise daily production to 9.6 million barrels this month from 9.05 million barrels in March.

"The meeting between Abdullah and Bush has had a psychological effect on the market," said a commodity expert in New York. "The message that came out of the meeting was that OPEC, and in particular the Saudis, will increase production and keep us well supplied."

However, Iran's oil minister said the world oil market was well supplied and might "even be oversupplied". He added that the market shouldn't reply completely on OPEC because there were many other players acting in the market.