The rectangular waveguide technique can be used to measure the complex permittivity of dielectric material of various thickness and cross section. This paper presents the analysis system of engine oil permittivity at which deterioration of engine oil is measured at the X-band(8-12.5 GHz). The middle of the rectangular waveguide has engine oil case and is connected with VNA(Vector Network Analyzer) for the measurement of the transmission$(S_{21})$ and reflection$(S_11)$ and then the permittivity is extracted. The deterioration of engine oil is proved by the comparison with both the extracted data and reference data. As the additional research, This paper suggest that an accurate permittivity is considered by not only the wave guide length but the air gap between oil case and the waveguide.