Used oil is treated in a reactor to remove contaminants. The reactor comprises a rotating vessel housed within a heating chamber. The inside of the vessel is indirectly heated by conduction through the vessel walls. The vessel contains a permanently resident charge of non-ablating, coarse granular solids. Within the vessel, the oil is vaporized and pyrolyzed, producing a hydrocarbon vapor. Coke is formed as a byproduct. Contaminants, such as metals and halides become associated with the coke. The coarse granular solids scour and comminute the coke to form fine solids. The fine solids are separated from the coarse solids and are removed from the vessel. The hydrocarbon vapors are separated from any fine solids and are routed to a vapor condensation system for producing a substantially contaminant-free product oil. The contaminant-rich solids are collected for disposal.