This application provides an oil refining system and method, including a water circulation system with a chilled water circulation unit including chilled water equipment and a chilled water pipeline, a hot water circulation unit including hot water equipment and a hot water pipeline, and an ambient temperature water circulation unit including an ambient temperature water pipeline. The oil refining system further includes a deacidification system, deodorization system, and a decoloration system to implement a systematization and automation of oil refining.