What is the difference between oil type and dry type transformers in relation to transformer oil?

The difference between oil type and dry type transformers in relation to transformer oil lies in their cooling and insulation methods. Oil type transformers utilize transformer oil for both cooling and electrical insulation, providing effective heat dissipation and enhanced dielectric strength. In contrast, dry type transformers do not use transformer oil; instead, they rely on air or solid insulation materials, which limits their cooling efficiency compared to oil type transformers.