Can fat 'turn into muscle'? No, not at all -- physically impossible.
Fat can be burned, and muscle can be built in its place.
Constant oblique workouts will build the oblique muscles beneath the fat -- while that's not a bad thing, overly hypertrophying those muscles can make your waist look wider. Furthermore, considering that you want to lose your love handles, I'd say that the 'constant' oblique workouts are a waste of your time -- you'd be better served by perfecting your diet and performing some high-intensity, full-body movements (sprints, tabatas, kettlebell swings, etc.) to really shred the fat.