The Elder Scrolls IV: Oblivion Interview
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Q: Mounted steeds now make an exciting introduction within Oblivion; can you provide us with a little more information about this feature and how it's implemented within the game?
A: You will be able to acquire a horse in Oblivion, and ride it around to your heart's content. Horses grant you a nice speed boost, as well as really help capture that feel of being a knight riding around on horseback. There are several different varieties of horses to get, each with varying stats and look. While in town, you can store your horse in the stables, and pick it up when you're ready to go. NPCs can use horses as well. If you're not careful, they may even steal yours!