A litre of heating oil contains just over 10kWh of energy, and modern oil boilers run at around 90%+ efficiency, so a litre of oil gives you 9kWh+ of heat.
Taking oil at the 60p/litre it was a short time ago, that works out at about 6.6p/kWh, compared with the 9p or so per kWh that was being paid for off peak electricity, so using electricity for water heating was about 50% or so more expensive than oil.
Oil is currently around £1/litre, so even at that price it's ~11p/kWh, so comparable to what E7 electricity was.. E7 is increasing to around 16p/kWh, so the savings with oil are still there.
Against the above argument is the fact that the electricity to hot water transition is 100% efficient, so all your electricity gets turned into hot water, but this happens in the middle of the night. After that, heat begins to leak away through the insulation of the HW cylinder.
On the other hand, you can use oil to heat the water closer to the time you need it, so cutting cylinder losses, BUT all the energy used to heat the water in the boiler itself and the boiler pipework, will be effectively lost when the boiler shuts down after heating the water. In winter, this lost energy adds to the heating of the house, but in the summer this doesn't apply.
As you can see, oil or electricity is far from a clear cut choice, but ultimately it'll depend exactly where prices settle, not that oil prices ever do.
I've just switched two of my properties temporarily from oil water heating to full price electric water heating, in the hope of eking out the very low oil level in the tanks until the oil price drops substantially. The cost of a oil delivery is currently dropping at about £30 a day, which is much more than the electric water heating is costing me, but at some point that will change.