The mildew may not be from the oil, but rather a high concentration of humidity in your house in certain areas. I had stored some items in a closet and had a reoccurring problem with mildew and nothing that I did would stop the problem.
Finally, I placed a couple of "Moisture Eliminators, "that I got from the Dollar Store and the problem was solved. You would be surprised at the amount of water collected; I change them every 45 to 60 days.
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