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By oil heater I presume you mean an oil-filled electric radiator?
Heating causes expansion of the metal and when it is cooling there are often metallic noises generated as it shrinks at different rates and the various components move against each other but I have never heard the noises described as a clanking.
The noises would be similar to those made by recently driven cars or motorcycles as they cool, often producing loud "ticks".
As it is a new heater, if you think the noise is abnormal you should contact the retailer.
There will be a loose connection in either the plug or the socket. I would strongly recommend you stop using the appliance, as there is a risk of fire. You should have both the plug and socket replaced with quality parts by a qualified electrician.
Could be that the thermostat is disconnecting because it senses too warm.
Plug the heater to the wall, turn on the switches. Turn the thermostat knob all the way to min. It should make a click sound and the heater should not get warm. Turn the thermostat knob all the way to max. It should make a click sound and the heater should get warm. If the heater is still not warming up and/or you don't hear clicks, then the heater has bigger a problem. With the cheap prices of the heaters, it is not worth trying to have an electrician check it out. Just buy a new one.
Probably the thermostat contacts have become worn and a certain amount of arcing is happening when they close.
Replacement thermostat units used to be easy to change and were readily available for quality domestically manufactured oil filled radiators but these days it would probably be cheaper to buy an imported heater. You wouldn't lose by asking your local supplier and if they are still available check the internet price.
It would be wise to check the wiring and internal connections before junking it.
Oil in these heaters is not supposed to sizzle. So, I don't think it's the oil. Something else is probably making the sizzling noise and that's what concerns me. As this type of heater literally makes no noise. What you hear may be a short in the wiring of the heater. In which case, it's unsafe to use. You didn't mention if the heater is new or that you've had it for sometime, but in either case, I would recommend not using it. If it's new, then it's still under warranty and you have some recourse. Check your Owners Manual for details on how to handle this as a warranty issue.