It's oiled with grapeseed oil, olive oil is recommended but I don't think there's a difference and it's cheaper. You can get away with not oiling some engines but this one is drenched in oil because it's almost impossible to turn over without lube. It's good measure to oil all LVE's though, it increases power and speed by quite a noticeable amount.
The first "engine" I built, which failed horribly, I lubricated with graphite, not wanting to use WD-40. That was a very bad idea. At the time I didn't know about using olive oil. Turns out olive/grapeseed oil is actually great, it wipes off easily and it's harmless and doesn't stink so it isn't a big deal if there's a little bit left on the pieces.
