The drag on my bait caster was acting up so I oiled it and now it is working teribly it jerks instead of releasing line smoothly. Any help with this would be greatly appreciated.

Is.. you did not mention what brand of reel you have. If it is an ABU/Garcia or Quantum, they do not recommend using grease (or oil) on their drag washers. Just replace them and make sure all the surface areas they contact are free of grease or anything else. The drag washers are less than a dollar. Use CRC Electrical Contact Cleaner to remove old grease and oil. You can get it at NAPA stores.

If you have a Shimano reel, they do use grease (not oil) on their drag washers. It is called amazingly enough, Shimano Drag Grease. It is about $5.00 for a small tub which will last a long time. Once again, drag washers are cheap.

I would buy new washers, available at most reel repair shops. If you have a Shimano, rub Shimano Drag Grease into the washer before installing it. If you have one of the other reels just install them dry. Clean all the drag surface areas with CRC, not matters which brand you have.

IS,
Take the reel over to Puget Sound Sports in Oly. The repair guy there (George) does good work. I think and overhaul and cleaning is about $10 - $15 bucks, well worth it!!! It's usually about a one week turnaround.
Good luck and tight lines, Jeff