I have heated oil with water in it in a oven up to 230F to get rid of the water, make sure and put a good fitting lid on the container your using due to the water settling to the bottom and then turning into steam bubbles when it gets close to 210 F. Those bubbles make a mess and can cause a oil fire if your not careful whiney
Oil with alcohol in it is another thing altogether I think, maybe not work

Mr.Cab Racing and winning with Mopars since 1964. (Old F--t, Huh)