Pure Tolu Balsam Essential Oil (Myroxylon balsamum) The oil of Balsam of Tolu to treat such common ailments as external wounds, asthma, colds, flu, and arthritis.Generally its topical use is recommended for skin rashes, eczema, and skin parasites such as scabies, ringworm, and head lice. Balsam of Tolu worked very well for antibacterial, antifungal, and antiparasitic purposes.