The best oils for crispy pan-friend chicken are neutral-tasting oils, such as canola, vegetable or peanut oil. Due to the high temperature needed to pan-fry chicken, these oils also work because they have a high smoke point.
Olive oil has a very low smoke point and is best for cooking at medium temperatures. Olive oil leaves fried chicken with a bitter taste. Additionally, olive oil tends to be more expensive, and properly pan frying chicken requires a lot of oil.
Even at a lower heat, oils that have distinct flavors can overtake the taste of fried chicken. For this reasons, sesame oil, plain butter and coconut oil are also poor choices for making pan-fried chicken.