Oil prices broke higher today closing at seven month highs. After surging for the last couple weeks oil is approaching the upper part of a huge technical range. This Brent close above the $88 level pushed the 50 day moving average above the 200 day moving average which in technical terms could mean a big break out to the upside. On the fundamental side Saudi Araiba is widely expected to extend its voluntary 1MM/bpd production cut into October and Russia has already agreed to cut exports next month. “There is a realization the economy is not falling off the map, and signs that demand is near record highs,” said Price Futures Group analyst Phil Flynn. “People have to face the cold, hard reality that supplies are below average.” WTI traded up $1.39 or 1.7% to close at $85.02. Brent traded up $1.66 or 1.9% to close at $88.49.