The time that the water coexists with the oil is an important factor.
When water combines with the organics in the oil, it forms amino acids. Acids in the oil, as you might imagine, will convert metal in a corrosive situation.
So, the oil change imperative must be weighed with how long the water existed in the oil. For example, if the water only existed in the oil from overnight condensation, vaporizing the oil during the next day's engine run will save both oil and engine.
However, if the oil has had water in it for the last 3 months, then an oil change is recommended.
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