It is often used as heat transfer oil by electric space heaters. Mineral oil is also used as a fluid in hydraulic machinery and vehicle, as it is non-compressible. Light mineral oil is used as a lubricant in textile industries and even used as a jute batching oil.For Cleaning. Mineral oil works wonders in cleaning heavy oil stains, by diluting and liquefying the other oils, thereby rendering them more accessible to detergents.t is often used as heat transfer oil by electric space heaters. Mineral oil is also used as a fluid in hydraulic machinery and vehicle, as it is non-compressible. Light mineral oil is used as a lubricant in textile industries and even used as a jute batching oil.