EIA data shows clear disconnect between stocks of crude oil and gasoline

The EIA's weekly US Petroleum Report, released earlier today, shows that stocks of oil continued to rise last week. 

There is now a clear disconnect between stocks of crude oil, which continue to surge, and those of gasoline, which have leveled off and even started to fall. 

Oil and gasoline stocks continued to diverge last week as drivers took further advantage of low fuel prices.

Capital Economics notes .....

• This divergence between stocks of oil and gasoline is mainly due to higher demand for gasoline, which has more than offset efforts by refineries to produce more fuel. 
  
  
• We expect US oil production growth to continue to slow over the next few months and begin to fall in the summer. 
  
  
• The upshot is that ample stocks will continue to depress the price of WTI in the near term, but falling production should give prices a boost in the second half of 2015.