Oil: The Technical Normalization Is UnderwayWTI CRUDE OILTVC:USOILSwissquoteThe geopolitical situation in the Middle East has evolved significantly since the beginning of June, with the confirmed end of the military operations that began on February 28 between the United States/Israel and Iran. Negotiations between the United States and Iran are continuing in an effort to reach a comprehensive peace agreement, a negotiation period during which a gradual economic normalization is expected. It will take a considerable amount of time—weeks, and probably months—to achieve a normalization of industrial operations around the Persian Gulf and a complete normalization of maritime traffic entering the Strait of Hormuz. That being said, can a stock market barometer be used to anticipate this economic normalization at an early stage? This is where technical analysis signals applied to oil prices can be useful. In previous articles on TradingView, I have already described my technical roadmap for oil prices, which have declined significantly on the financial markets since the beginning of May. Can we therefore speak of a return to the pre-February 28 environment for oil prices and their inflationary impact? Not yet, but yes, normalization is clearly already well underway. The chart below shows the technical levels that I described as early as the beginning of March, and I have not modified them. Oil prices have exited the inflation shock zone as well as the technical red-alert zone by moving back below the $80 level. The chart below displays the weekly Japanese candlesticks of US crude oil (WTI). Below $80, we can speak of a normalization of oil prices and a broadly neutral impact on headline inflation. However, the true technical signal of normalization has not yet been confirmed. It would be the filling of the bullish gap opened on Monday, March 2, between $67 and $69. The day US oil prices fill that gap, the return to the pre-February 28 environment will effectively be validated. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. This material is intended to highlight market action and does not constitute investment, legal or tax advice. If you are a retail investor or lack experience in trading complex financial products, it is advisable to seek professional advice from licensed advisor before making any financial decisions. This content is not intended to manipulate the market or encourage any specific financial behavior. Swissquote makes no representation or warranty as to the quality, completeness, accuracy, comprehensiveness or non-infringement of such content. 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