Yeah, it is definitely possible that oil soaked wires can cause them to break down and start shorting out.
You may want to find a reasonably priced set of OEM style plug wires at an auto parts store if you're worried about spending too much money... That way you can swap the cheapo's in, test drive it, and if it still doesn't work there's not that much money out of pocket.
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1989 7MGTE R154 Targa Top White Package w/Blue Interior
Driftmotion 57trim CT26, Upgraded Intercooler, 2.25" Hard Pipes, 3" Turbo Back Exhaust with Test Pipe, HKS VPC w/GM 3 bar MAP sensor, APEXi S-AFC, Walbro 255lph fuel pump, ProSport EVO Series Boost / Fuel Pressure / AFR gauges, Lotek a Pillar Gauge Pod, HKS Type 0 Turbo Timer, Eibach Lowering Springs, Tokico Illumina II TEMS struts, custom powder coated Motegi Racing TrakLite wheels
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