[M John Galt]

Yes that looks to be clear clean dry oil.

My VO processor goes from ~100µ [bugscreen/pantyhose] to ~20µ [jeans leg bag filter] to 5µ [whole house water filter]. Most of the 'stuff' gets caught in the first screen, nearly all of the rest settles out in the upflow barrel. A little 'crud' collects in the bottom of the bag filter, and the 5µ water filter cartridge lasts for hundreds of gallons.