Oil prices retreated in midday trade here falling below 55 usd a barrel as investor concerns over a supply crunch dissipated, dealers said. At 12:00 noon, New York's main contract, light sweet crude for delivery in July, was down 19 cents at 54.30 usd from its close of 54.49 usd in New York yesterday. Daniel Hynes, an energy analyst with ANZ Bank in Melbourne, said oil prices were bound to fall as the recent spike was driven by worries about supplies of distillates such as heating oil, months before the northern hemisphere winter sets in. "I think it was a real surprise to see the market focus on the issue so far out from the peak demand so prices as a consequence have come off. It (the recent price increase) was due more to technical reasons rather than any fundamental issue," he said. Hynes said he expects prices to ease to 53 usd in the coming days. "I think we should see prices ease a bit further mainly because there seems to be limited upside risks at the moment," he said. Gasoline stockpiles play a bigger role in influencing price fluctuations because of the onset of the summer driving holiday season in the United States, the world's biggest energy user. Hynes said however there appears to be enough supplies to meet demand. "The buildup in US crude oil inventories suggest that once again supplies seem to be meeting current demand quite well and it's purely been a fear of future supply disruptions ... which had been driving prices higher," he said. "If you take that fear out, the numbers suggest that the prices should be a lot lower."