The bad oil will not help lift, but is not likely the root of the problem. First, if it has one way lift cylinders (no down pressure), make sure the hydraulic control valve for that motion is set to single acting (knob and roll pin on end of valve, if using the IH valves next to the seat. If these are part way between settings nothing works correctly. If the tractor has a fast hitch, make sure its valve is set to two way. A pressure gauge reading to 2000 psi will tell you the real pressure it is making (should be between 1200 and 1500psi on a dead ended pressure hose. The pressure relief valve could be stuck or with a broken spring. The pump may just be toast. A good hydraulics person will tell you in short order.
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