What we have here is a failure to communicate! I am playing the USA in the 1936 game. It is June, 1941 and I get the Jap Oil Embargo event which I accept. I have had auto trade turned on most of the game. In mid July, I check my active trades and find that I am trading oil to the Japs again! Which minister do I sack fo this screw up?
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I have noticed the same thing. It does not, however, seem to delay the Japanese DOW. On the other hand, I have never had any difficulty conquering Japan before they possibly would have run out of oil anyway, so I did not care except the first time I noticed it, I feared they may not DOW if my autotrading kept senidng them oil. I assume it is a glitch that is simply inconsequential becuase of the way I play the US against the AI, but I would love to hear more about what is going on from others.
I think this has something to do with the Oil Embargo event not switching AI-scripts and setting the appropriate embargo policy (both USA -> JAP and vice versa, if one side is human-controlled). The event simply ends all trades but does not inhibit any new ones...