it's probably because steam has many empty holes and gets away very quick. The oil falls in these holes because of, well, gravity. When the oil bumps into the liquid water, it stops and stays there. Oil floats on water so that's the two sides: Oil falls down in steam and floats on water, that's why the most popular position is exactly inbetween. Tho I had problems recreating that, didn't see much of that effect.
I don't see what you're talking about. The only thing I see is the effect I described before and some arc of water above the heat source (maybe that's what you need an explanation for?). Shortly after the arc appeared, all the oil burned away. And where did that plug/drain come from?