Lotions
From the perspective of skin health, oil and lotion each offer benefits, assuming of course the selection of lotion is free of petroleum products and other noxious chemicals. It's not uncommon for us to have a favorite and inexpensive, over the counter cream or lotion, but beware, theres a reason they are so inexpensive, as many of those brands contain unwanted chemicals.
Often times massage lotions are preferred over oils because of the lotions penetrating qualities which allow it to more easily hydrate the skin. Lotions also often contain other beneficial ingredients like Aloe, vitamin E, and keratin, which help the skin look younger and refreshed. The beneficial ingredients in lotion can replace lost skin moisture and heal and repair damaged skin.
Unfortunatley, lotions may be more likely to contain other synthetic chemicals which aren't desireable and that can absorb into the skin. And we have all experienced the chilling effects of unwarmed lotion applied to your skin. Like anything, weigh your pros and cons when deciding what works best for you.
Oils
Oils, like lotions, have advantages and disadvantages. Oils protect the skins lipid barrier, therefore sealing in more moisture into the skin. Many oils, that are noncomedogenic and which do not contain petroleum products, will not clog pores or cause any irritations or breakouts. The friction-less gliding that only oils can provide, is ideal for massages and rarely are you chilled when oil is applied.
When using oil, you should take an extra precaution not to spill any oil on the floor. Especially if barefoot and on a hard tile or lenoleum floor, taking a fall is a real possibility. Also, it goes without saying, to beware of taking a sip of any refreshments that may be in a glass.
Sensitive Skin
Flavored or Fragranced oils and lotions alike, although rare, can irritate sensitive skin, even causing an allergic reaction. Chances are that at some point in the past you've already used some sort of perfumed or scented lotion and you are already aware of your sensitivities. This doesnt mean, every oil or lotion will have the same affect. Check the ingredients of the product your skin has a bad reaction to and compare them with other products. Not all oils and lotions are created equally or with the same additives. A general rule of thumb is that you get what you pay for with lotions and oils. Quality costs.