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I beleive the oil signifies the annointing of God. The object or person annointed belongs to God. In respects to the passage being discussed it means that the sick person belongs to God. Consider the following passages:
Genesis 28:18 So Jacob rose early in the morning, and took the stone that he had put under his head and set it up as a pillar, and poured oil on its top.
Exodus 29:7 7 "Then you shall take the anointing oil, and pour it on his head and anoint him.
1 Samuel 10:1 Then Samuel took the flask of oil, poured it on his head, kissed him and said, "Has not the LORD anointed you a ruler over His inheritance?
1 Kings 1:39 39 Zadok the priest then took the horn of oil from the tent and anointed Solomon. Then they blew the trumpet, and all the people said, "Long live King Solomon!"
Psalm 23:5 5 Thou dost prepare a table before me in the presence of my enemies; Thou hast anointed my head with oil; My cup overflows.
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