Holy Oil is a rare substance. Castiel obtains some from Jerusalem, in order to use it to restrain Raphael.[1] When the oil is ignited, its flames will trap Angels and Archangels.
Sam describes it as like "a devil's trap for angels"[2] but it differs because they can still use their powers while trapped within the flames.[3]
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Uses of Holy Oil
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Sam and Dean use it to trap the Trickster, forcing him to reveal that he is actually the Archangel Gabriel. Dean releases him by turning on the fire sprinklers
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Lucifer uses it to trap Castiel, but he manages to break the circle and escape by throwing Meg on the flames. The extent of her injuries were unclear, but she survives
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Castiel uses a molotov cocktail of Holy Oil to momentarily banish Michael
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Dean traps the angel Balthazar in a circle of ignited Holy Oil and forces him to return the soul he got from a boy, Aaron Birch, in exchange for a piece of the Staff of Moses. Castiel causes the circle to vanish with a gesture when he wishes to free the angel
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Dean, Sam and Bobby trap Castiel in a circle of ignited Holy Oil and forcing him to reveal his secret about working with Crowley. Castiel tells Dean, Sam and Bobby to leave him when the sound of a storm of Demons are coming. In the end its just the arrival of Crowley who causes the circle to vanish with a gesture when he wishes to free the angel .
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References