unless that rod was annealed, it does appear the coloring suggests a wee bit of heat helping to contribute to the "let me outa here" behavior of said parts. Besides it's primary job of lubrication, oil aids in cooling metal. But heres the deal, IT HAS TO BE PRESENT in order to work. Slick 50 to the rescue? Well for a while anyway. Oh well, people that make and distribute parts gotta work too. I hope you got lucky and the block and cylinder can be salvaged.