Step 1: Use the floating condition in water.
For a floating body,
\[
\text{Weight of body}=\text{Buoyant force}
\]
Let the density of wood be
\[
\rho_w
\]
In water, half of the volume is submerged.
So,
\[
\rho_w Vg=\rho_{\text{water}}\left(\frac{V}{2}\right)g
\]
Cancel \(Vg\):
\[
\rho_w=\frac{\rho_{\text{water}}}{2}
\]
Given,
\[
\rho_{\text{water}}=1000\,\text{kg m}^{-3}
\]
Therefore,
\[
\rho_w=500\,\text{kg m}^{-3}
\]
Step 2: Use the floating condition in oil.
In oil, submerged volume is
\[
0.8V
\]
Let the density of oil be
\[
\rho_o
\]
Again, by floating condition:
\[
\rho_w Vg=\rho_o(0.8V)g
\]
Cancel \(Vg\):
\[
\rho_w=0.8\rho_o
\]
Step 3: Find the density of oil.
Substitute
\[
\rho_w=500\,\text{kg m}^{-3}
\]
\[
500=0.8\rho_o
\]
\[
\rho_o=\frac{500}{0.8}
\]
\[
\rho_o=625\,\text{kg m}^{-3}
\]
Step 4: Final conclusion.
Hence, the density of the oil is
\[
\boxed{625\,\text{kg m}^{-3}}
\]