Apparently when motor oil flows through a hot engine for many hours it undergoes thermochemical reactions that make it significantly more toxic than "new" motor oil. "Benzene" is a common type of cyclic or polycyclic aromatic compound (PAC), which for simplicity I'll refer to collectively as "tar". Mobil says that used motor oil "...Contains polycyclic aromatic compounds (PAC) from combustion products of
gasoline and/or thermal degradation products". Pennzoil says "Used oils may contain harmful impurities that have accumulated during use".
This issue is interesting because the pyrolysis and incomplete combustion of wood also undergoes thermochemical reactions that make it significantly more toxic. Particularly wood smoke (or "tar gas") can contain benzene and polycyclic aromatic compounds. This condensed tar is creosote. This suggests that used motor oil and creosote are both toxic for more-or-less similar reasons.
Wood pyrolysis initially emits simpler "primary tars", which then react with temperature and time to form "secondary and tertiary tars" (that include these cyclic and polycyclic aromatic compounds). These are the tars that are so difficult to simply "burn off" in an ordinary
wood stove. There's a bit of a problem with simply trying to "burn them off". Even though the formation of these tars is less favorable at higher temperatures, the rate at which the formation reaction proceeds is increased. So when attempting to burn smoke, most of the primary tars can be burned off but this also causes the formation of secondary and tertiary tars which are much more difficult to burn off.
I gather that these tars are condensation products, whether they are condensing into motor oil or condensing into creosote. But in the case of "wood char" ("charcoal" or simply "char"), I'm wondering how much of the tars and polycyclic aromatic compounds are left behind in the char. Evidently it is not enough to poison the soil, because plants can grow after a forest fire; however, in theory it's possible that some residual tar remains in the char, existing either within the highly-porous material or somehow "adsorbed" into it like in a charcoal water filter. Char can contain oxygen and water, but it doesn't contain food or light, so ordinarily these conditions wouldn't support life. This makes it more difficult to know intuitively whether it is toxic or not and to what extent. I think the good news is that even if char does contain some toxic tars, these tend to be contained within the char, and are only slowly released or broken-down. I suppose motor oil is different because any tars can leach out of it into the surrounding soil at a much higher rate. Also most biomes are probably less well-adapted to the presence of motor oil than to wood char. Forest fires seem more prevalent in nature than tar pits.
The char-treatment of wood for wood-preservation followed by treatment with a natural oil is also called "shou sugi ban". It is reported to be extremely effective at resisting the fungal attack that causes wood rot. I figure this is because: 1) char is not a food source for fungi , 2) oil repels water, displaces air, and might block some oxygen, which fungi need to thrive. 3) presumably char holds oil better than wood. 4) I would expect the oil to go rancid eventually, but if this process is slowed by the char, it might be one clue that residual tar could be preserving the oil, possibly by containing residual tars that might be somewhat toxic to microbes or other life. It would be interesting to know how the level of tar-content in char affected the wood-preserving properties.