IMHO, your engine is likely to be in need of more than just lubrication. The motor probably could use a cleaning. Sometimes the reversing mechanism (e-unit) could use a good cleaning too. (Do not use alcohol to clean the motor)
Another choice for oil would be any lightweight, plastic compatible oil.
I use Labelle 106 grease or Red N Tacky grease where applicable.
Regardless of what you use, don't overlubricate. Too much oil will just attract dirt, and migrate to where it does not belong.
Not everything that turns or slides should be lubricated. Clean the commutator slots. Here is some supporting documentation:
Maintaining your Lionel Train