Oiling out has its place and definite advantages over retouch varnish. From the information posted, I should think the painting is nowhere near dry enough for oiling out, and FWIW, the process is better accomplished with little or no MS, the oil being "massaged" into the paint film with enough friction to warm it.
There are so many possible variables to this problem it's very difficult if not impossible to recommend the best remedy without seeing the painting.
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