There's a reason why oatmeal baths are recommended when you have rashes or eczema, and that's because colloidal oatmeal extracts are anti-inflammatory by nature. Studies have shown at applying it topically can soothe the skin of itchiness, dryness, and roughness (source).
In addition to calming the skin, use of colloidal oatmeal can also help strengthen the skin’s barrier, which in turn can help the skin better retain its moisture level (source)
