Albert Weldon worked in the Oracle Mine and began building a brush camp, near where Oracle is today. By 1882, there were about eight dwellings in the area.
The town did not begin to grow, until the opening of the Apache Mine. T
hen, Edwin S. Dodge applied for a post office. His first name choice was rejected.
Later, the name Oracle was suggested. Oracle was the name of a ship. Weldon had made the trip to America around Cape Horn on his uncle's ship named the Oracle. The name was agreed upon and submitted to the postal authorities for approval.
http://www.arizonan.com/Oracle/