Whilst most colored pencils are wax based, some brands use an oil based lead, like Faber Castell's Polychromos. These pencils are very soft to apply color so will cover every fibre of the paper with their bright hues, but they are also very expensive and should only be considered if you are looking to take your art to the highest level.
Colored Pencil Tinting . Embroider the design as desired. Tinting with colored pencil is similar to working with crayons. The result is much softer and it works well for blending color. The color is less colorfast than other tinting methods, so reserve this technique for embroidered items that won't be washed.