Palm oil is a type of vegetable oil that is produced from oil palm fruits, a tropical tree that grows mainly in Africa, Asia and Latin America. Palm oil is rich in saturated fatty acids and is solid at room temperature, making it an ideal oil for frying and cooking at high temperature. It is also often used in the production of margarine and peanut butter. However, palm oil is also controversial due to its harmful effects on the environment. Palm oil production leads to deforestation.