Personally I prefer to carry the single serving packets of EVOO that one can find online (Minimus for example). It is the perfect amount for one meal. It stays fresh, doesn't leak, etc.

The thing about oil is that for its weight it provides a lot of calories making it worthwhile weight. It provides a fuller feeling to meals, keeps one warmer at night in cool weather and keeps stomachs feeling better - since dehydrated food can easily upset a stomach not used to it.

I don't see a conflict in hiking UL and carrying oil.

And yes...you can turn it into a powder but why? It still weighs the same (if not a tiny bit more) and the issue behind it being a powder is you cannot dress a cold salad with it (say a lentil and couscous salad). It becomes more limited IMO.