Oil floats on water. Water sinks in oil.
When heated, water turns to steam, a gas that has a volume which is much greater than liquid water.
When poured into hot oil, water immediately sinks to the bottom, then begins to boil. The water becomes steam which displaces the oil, often violently, pushing it up out of the vessel and causing the oil to spatter everywhere.
If this oil happens to also be on fire, then fire goes wherever the oil goes.
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