With possibly very few exceptions, almost each time the Bible mentions oil, it is referring to olive oil. Olive trees were plentiful throughout the Holy Land and many people had them in their yards. Olives were eaten as a food source and when pressed, the oil was used in cooking to enhance flavor. It was also mixed with flour to make bread and even spread on bread as a topping (like we do with butter or margarine).
Besides being a dietary staple, olive oil was used as a religious offering (Leviticus 2:4), a means of anointing priests and kings, as a remedy for stomach disorders, a balm to heal wounds, an emulsifier for dry skin, and as a fuel source for oil lamps. Olive oil was also used in making perfumes and fragrant ointments, such as myrrh and spikenard.
Olive oil is still used by the Church for all purposes of anointing and is the base ingredient in Holy Chrism.