Well I wouldn't take the Spyderco Bushcraft handle blooper as a good example. The wood was supposed to be stabilized, it wasn't, or it was done very poorly, by the company supplying the scales to Spyderco. Stabilised wood does not really need oiling.
Also worth noting, in the above instance, the wood was spalted, meaning it had a natural fugal infection which causes random coloration and patterns within the wood. The pay off of this coloration is that the wood is weakened and more fragile than an unspalted piece. In these cases stabilisation is used to bind the wood together and stopping any movement or weakness from affecting the handle integrity. This can also be the case for many handle pieces cut from burls, roots or cross or oblique cut weak grained woods such as Yew (ask me how I know :-/).
But, truth be told, it's good to give your (normal, unstabilised) wooden handle knives a bit of an oil from time to time, much like it is with any wooden handle tool, such as axes, hammers and chisels.
You can use any suitable oil you fancy, from vegetable oil to tung oil. It's a matter of personal taste....and if you are oiling the blade, I mean that quite literally! Food safe oils, such as those used for chopping boards can be ideal if you are oiling the two together.