Topic: filtering oil

[Peripatetic Phil]

However, I was wondering whether if I'd heat it over 100C, wouldn't the aqueous content form bubbles, rise to the surface and form a steam cloud, in other words, evaporating the aqueous content.

Eventually, yes; but you would be left with all of the contaminants that so helpfully bind to the aqueous layer in your oil, thereby making filtration much slower and more difficult.  Look up "clarifying dripping" in Mrs Beeton or Hannah Glass and you will see from whence comes this technique ...

** Phil.