IBM System X M4 Series Servers Oracle Linux Support
Short answer: It should.
Oracle Linux is a child of RHEL. If RHEL is supported on this hardware then you should have no problems with OEL using the RHEL derivative kernel.
The Oracle kernel is based on a more modern but should work.
IBM has a vested interest in making servers that work with current Linux distributions. Oracle Linux is one of the distributions they provide support for. It is the 3rd distro in the list at http://www-03.ibm.com/systems/x/os/linux/.