First do not panic! Then grab some 180, and perhaps some 240 grit sand paper and a Cork or soft bottomed piece of wood to sand with (sand block)
Take the steel wool pads and put them in a drawer, you are never allowed to take them to oak again.
Grab some of the oil that you said that you had, Danish or what ever it is you can find that matches.
You need to find out how deep the stain has gone… if the steel wool is actually steel and not stainless steel or somesort of other type of metal, that is what likely caused the futher staining and rusting of the wood. Oak contains tannic acid and it will react with steel causing black stains or discolorations… in fact oak will react with just the sweat from your hands, and one who has worked with oak, especially european oak, will notice very quickly how black the hands become when working with oak. Water can also cause oak to turn dark colors if exposed long enough.
As I was saying you need to find out how deep the stain has gone… sand carefully, at first with the 180, starting first in the affected area, with the grain just to see how deep the discoloration has penetrated. But do not sand too much, (thats why I suggested the 180, because its finer and does not remove so much material at once), other wise it can be that you cause a “wavy” surface or “valleys” thats why you need a sand cork so you sand evenly.
If you find out that the stain is not so deep, than sand across the middle of the table top and “feather” out the sanding so you can blend in the oil better… eventually moving up to the 240 grit.
If the stain is really deep, than it might be worth getting a hand sanding machine, eccentric sander would be best, and sand the surface of the table down, probably starting with 120 and sand until the stain is gone and the rest of the table evenly, then go to 150, then 180 grit, then 240. Apply the oil, wait over night. Wipe excess, let dry overnight, sand lightly again, oil again, wipe off excess. Done.
-- Nicholas, Journeyman Cabinetmaker, Partenkirchen, Germany