Hi Trader_4,
Bronze bearings like that are porous and soaked in machine oil like a sponge. When the friction of the rotating shaft heats up the bearing, the oil expands out of the bearing on to the shaft. It is called a "self lubricating bearing". So yes, there is oil in them. I personally prefer double ball bearing fans.
And, both the repairman I like and the part house I got the replacement told me that burning tire stink and oil on the case of the fan are the first symptoms of a failing fan.
When sleeve bearing fans use up all the oil where the shaft rotates, the heat generated causes the oil on the outside of the bearing to sweat all over the place. And it stinks like hell too.
This is the fan:
By the way, there is about five times the air flow with the new motor.
-T