From: Hoorn (NED).
No it looks like I'm the one who's confused. I forgot that rule, which was added as an errata to RAW7, had been incorporated into MWiF.
I downloaded the file and I can only speculate why it doesn't work when it should. The only disorganized Italian oil dependent units I saw were in Albania. Maybe the game is having trouble tracing from them to the oil. They definitely have a path, but maybe the game is confused by it being Italian convoys with German oil.
The way MWIF is coded now, you can't use oil from your allies to reorganise your units. This is because of the fact that your ally needs to allow you to do so, and in multiplayer games, that might not always be the case.
For example: suppose the German player only allows Italy to use 0,5 of an oil point, since it wants to use the rest for himself. However, Italy wants to use more. Also, using eachothers oil mean that oil reorganisation can't take place simultaneous anymore. There were a couple of other rule questions with this too, I believe.
We had quite a discussion about this rule in the private forums and I believe that we agreed (however reluctantly) not to code it. So it would have to be put in as a deviation on the rules. Or was this decision a "at this moment" decision? I don't know anymore...