Causes of Oily Skin:

Oily skin is an over functioning of the sebaceous glands (oil producing glands) distinguished by a shiny appearance and break out. Sebaceous glands produce more oil than required for lubrication. Oily skin has enlarged pores, and is prone to black heads. Skin has a coarse, thick look.

Causes for oily skin:
Hereditary: The amount of oil that an individual makes is determined by genetics.
Diet: A diet rich in oil and fat can cause oily skin.
Hormones: Hormones affect oil production. The oil gland is considered the end organ because it is this gland that is acted upon by hormones. Hence it is called an "end organ response". Though people may have the same level of hormones, but produce different quantity of oil because their oil glands respond differently. This are the following conditions when hormonal levels change:
Puberty: During adolescence, an increase in the level of sex hormones, known as androgens, causes increased production of oil. The reason for this is that androgens enlarge and stimulate the sebaceous glands, causing them to produce more sebum. Because of this hormonal change in adolescence, oily skin is common in teenagers.
Menopause: During menopause there is a decrease in the amounts of estrogen produced and an increase androgen. Androgens stimulate sebaceous glands thus causing oily skin.
Menstruation: Before periods also estrogen levels are low and thus they can also upset the oil balance and increase the activity of sebaceous glands.
Birth control pills: These pills are made of hormones and thus change the hormonal balance.
Cosmetics: Cosmetic containing called isopropylmyristate can cause oily skin.
Incorrect, insufficient cleansing: Sleeping with make up on or using harsh products to clean can stimulate over production of oil.
Atmospheric conditions: Humid and warm climate stimulate production of oil.
Medical Causes: Hepatic (Liver) and endocrine malfunction can change the hormonal balance. Infections can also lead to oily skin. Even physical stresses, such as colds, allergies, surgery can cause more oil production.
Nervous stress: Studies have shown that the body produces more androgens when a person is under stress. The triggers sebaceous glands to pump out more sebum.

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