Answer :

Oil as you might notice is used in moving parts in machines.
The reason being is that oil is a smooth type of liquid.
So when machine parts are moving with oil on them, the oil allows the machine parts to move more smoothly. So when there is a squeaky noise on a moving part on a machine, mechanics/workers often put oil to make it more smooth because the moving parts are rubbing off on each other.

yeah what he said. I was going to say something like that but he explained it better.