# Algos and options turn a tumble into a crash on oil's Black Friday - The Business Times

> WTI crude fell 13% and Brent fell 12% on Black Friday, November 26, 2021, the largest one-day drop for WTI since April 2020. The sell-off was triggered by concerns over the Omicron Covid variant, with algorithmic and options selling amplifying the decline.

- Date: 2021-11-26 · published 2021-11-26T12:00:00.000Z
- Category: disease · region Global · magnitude high
- Page: https://feedsoft.ai/events/7080-algos-and-options-turn-a-tumble-into-a-crash-on-oil-s-black-friday-the-business
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A sharp crude collapse lowers diesel, fertilizer and freight costs and may pressure biofuel-linked vegetable oil demand, while the Omicron demand scare points to weaker energy consumption ahead.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- BRENT: bearish ▼
- DIESEL: bearish ▼
- USDARS: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DIESEL | 2021-11-26 | 1 | -6.2% | -4.5 | It describes the 12-13% crude crash on Nov 26 triggered by Omicron concerns and amplified by algorithmic and options selling, which pulled diesel futures down. |
| DIESEL | 2021-12-01 | 5 | -13.2% | -4.2 | WTI and Brent had their largest one-day drops since 2020, amplified by algorithmic and options selling, which fed through to distillate futures. |
| BRENT | 2021-12-01 | 5 | -15.6% | -5.2 | Algorithmic and options selling amplified the Omicron-driven drop in thin holiday liquidity, deepening the decline. |
| WTI | 2021-12-01 | 5 | -16.5% | -4.7 | Algorithmic and options selling amplified the Nov 26 Omicron-driven plunge in thin holiday liquidity. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-01-27 | [Oil drops below $60 as China virus drives demand concern \| Fox Business](https://feedsoft.ai/events/54975-oil-drops-below-60-as-china-virus-drives-demand-concern-fox-business.md) | -4.7% | -5.1% |
| WTI | 2021-12-01 | [Oil turns lower as Covid variant is confirmed in the U.S.](https://feedsoft.ai/events/6815-oil-turns-lower-as-covid-variant-is-confirmed-in-the-u-s.md) | +8.8% | +15.8% |
| WTI | 2020-01-22 | [Fueled by concerns over the ‘China virus,’ oil markets tumble - FreightWaves](https://feedsoft.ai/events/12373-fueled-by-concerns-over-the-china-virus-oil-markets-tumble-freightwaves.md) | -8.4% | -8.5% |
| WTI | 2021-11-26 | [Oil crashes as coronavirus strain threatens demand recovery \| Oil and Gas News \| Al Jazeera](https://feedsoft.ai/events/4773-oil-crashes-as-coronavirus-strain-threatens-demand-recovery-oil-and-gas-news-al.md) | -15.0% | -5.7% |
| WTI | 2020-01-28 | [Diesel Slump Turns Into a Rout as Virus Locks Down Cities - Bloomberg](https://feedsoft.ai/events/12371-diesel-slump-turns-into-a-rout-as-virus-locks-down-cities-bloomberg.md) | -5.7% | -6.2% |
| SBO | 2020-02-19 | [Palm oil extends losses on weak demand  - The HinduBusinessLine](https://feedsoft.ai/events/10641-palm-oil-extends-losses-on-weak-demand-the-hindubusinessline.md) | -4.1% | -17.2% |
| SBO | 2020-03-31 | [The price of sunflower and soybean in Ukraine in the near future may be reduced](https://feedsoft.ai/events/54255-the-price-of-sunflower-and-soybean-in-ukraine-in-the-near-future-may-be-reduced.md) | -0.1% | -5.8% |
| SBO | 2020-03-30 | [NCP affects vegetable oil consumption and livestock production, and new changes appear in vegetable oil and meal markets - China Oil and Oilseeds Report - CnAgri-China Agriculture Consultant](https://feedsoft.ai/events/54211-ncp-affects-vegetable-oil-consumption-and-livestock-production-and-new-changes.md) | -1.6% | -6.9% |

## Sources

- batimes.com.ar: https://www.batimes.com.ar/news/economy/argentina-tightens-exchange-controls-to-curb-outflows-of-dollars.phtml
- businesstimes.com.sg: https://www.businesstimes.com.sg/companies-markets/energy-commodities/algos-and-options-turn-a-tumble-into-a-crash-on-oils-black-friday

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.