As I really don't know what type of oil this is, I can tell you that it's not neatsfoot or any other type of conditioner. Looks more like some sort of butter or cooking oil. I do not have a clue as to how I would have gotten this spot to start with. I tried cleaning with Acetone, but this seems to have discolored a larger area, and you can still see where the oily spot was. What the heck, I'm going to try applying the dye and just see how it looks. Worse that could happen, I will cut another piece using this one as a pattern.
Thanks for your replies,
Don