Olive oil is thought to be an excellent carrier for essential oils. It is a strong emollient for dry skin due to its high fatty acid content (Oleic Acid, Palmitic Acid, and Linoleic Acid), and it also contains phenolic compounds that provide antioxidant protection.

Because of its high oleic acid content, olive oil should not be used on the skin on its own. According to research, such use weakens the skin's barrier. However, when olive oil (in low concentration) is combined with other skin-beneficial ingredients in a formula, this negative effect is not observed.

Also see:
Oleic Acid
Palmitic Acid and
Linoleic Acid