I've never tried it with oils but if you suspicion water in your fuel, even if mixed and not settled, pour a little of red food dye into a container with the suspicious fuel and the red food dye will turn any water, even small drops, red. Whenever I refueled aircraft at smaller airports I'd have the first gallon of fuel sprayed into a clean white plastic bucket and sample for water, especially jet fuel.
Regarding using alcohol in some hydraulic systems, especially those that use MIL-H-5606 hydraulic fluid, alcohol is very bad news!! Even cleaning hydraulic system components with alcohol that has dried and then using MIL-H-5606 Hydraulic Fluid with those components can cause future failures.
Just a FYI
Jim