To minimize water and particulate contamination from entering new drums of oil, it is preferred to keep drums indoors and stacked horizontally. However, when it is necessary to store drums outdoors and uncovered, here is a technique that may be used to remove water from the top of a drum:

Attach a paper towel to the top of the drum. In the accompanying photo, a magnetic clip was used. Allow the paper towel to hang over the edge of the drum so that the water wicks through the towel and down the side of the drum. Water will continue to travel from the top of the drum to the ground, so that breathing of water through the bungs is reduced. (David Turner, Shell)

The book "Lubrication and Maintenance of Industrial Machinery" lists 5 ways solid particles in an engine oil can diminish optimum energy performance. Below is one of them:

Frictional Losses. When hard clearance-size particles disrupt oil films, including boundary chemical films, increased friction and wear will occur. One researcher reports that 40 to 50 percent of the friction losses of an engine are attributable to the ring/cylinder contacts, with two-thirds of the loss assigned to the upper compression ring. It has been documented that there is an extremely high level of sensitivity at the ring-to-cylinder zone of the engine to both oil- and air-borne contaminants. Hence, abrasive wear in an engine's ring/cylinder area translates directly to increased friction, blow-by, compression losses, and reduced fuel economy.

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Moisture is considered a chemical contaminant when suspended or mixed with lubricating oils. This article discusses the potential problems, states of existence and methods for measuring water in oil.
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