It's probably not good for them, but I doubt it could kill all of them either. My dr said to stay away from lubes w/scent or "warming" when ttc. It's not the oil, like mineral oil, but the other ingredients that are bad.
They don't really advise using oil when TTC. Like Tina said it doesn't kill all of them, but it's not the best. I beleive there is one type of oil that is ok, but I'm not sure what type so sorry. But if you need a lubricant try preseed, it's suppose to be sperm friendly, but it's costly. However, it does not replace cervical mucous.