Although it is not oil soluble, the oil allows the water to hydrate it in a slower and more even way thus avoiding lumps.
It can be whisked then but keep the whisk low so as not to introduce air into the gel.
You can also use a stick blender but again, keep it low to avoid getting air bubbles in.
It is not oil soluble and will not thicken oils and is tolerant to having 5% oils combined.