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For most passenger car and light truck engines:

Yes! Very much so! Most of these engines use oil for lubrication. Without the oil, metal-on-metal friction would generate tremendous amounts of concentrated heat. Local temperatures would quickly rise so high that critical parts would melt and weld together becoming non-moving parts. That's hot!

Some (but not all) also have oil-cooling system which use air to cool the oil and allow the oil to help cool the engine.

Deisel engines:

No. Oil is the fuel these engines use for normal operation. Normal engine operation generates heat, and as such, the engine runs hotter with oil than it would be in a non-operating condition due to lack of fuel.

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Q: Does oil make a car run cooler?
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