Crude Surges $6.82 to $89.31, Highest Since May

Crude oil surged $6.82 this week to $89.31 a barrel, the highest level since May, extending year-to-date gains to 55%. The move pushed prices well above the 50-day moving average, which had capped rallies in June and July.

The break above $85 resistance came on rising volume, with open interest climbing 12% over the past two sessions, according to exchange data. The relative strength index moved above 70 for the first time since April, signaling the rally has entered overbought territory.

Traders said the catalyst was a combination of draws in Cushing storage and a weaker dollar index, which fell 1.4% this week. The next resistance level sits at $92, the January high, traders added.

The rally leaves the 200-day moving average at $82 as the nearest support, about 8% below current prices. A pullback to that level would test whether the breakout holds or fades.

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