Oil's Black Friday: Algos and options turn a tumble into a crash

What happens next depends on whether the direst predictions for Omicron's impact are realized

Black Friday turned red very quickly for global oil markets. 
 

The day after Thanksgiving has been choppy before -- fewer traders can mean more volatility -- but nothing like this year. The prospect of the freshly named Omicron variant of Covid derailing the world’s fight against the pandemic saw an early morning sell-off become a full-blown crash. 

At the end, investors were rushing to cover short positions, analysts were ripping up forecasts and next week’s OPEC+ meeting was up in the air. West Texas Intermediate oil, the U.S. benchmark, closed 13% lower, the biggest decline since April 2020. Brent crude slumped