Yes, oleo is in the scrabble dictionary

...and is worth 5 points by itself.

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Oleo Definition

noun

Margarine.
from The American Heritage Dictionary of the English Language, 4th Edition

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Top Words by points

Points

oleo

4

2 letter words with OLEO

Points

el

2

lo

2

oe

2

3 letter words with OLEO

Points

loo

3

ole

3

4 letter words with OLEO

Points

oleo

4

Found 6 words in 0.13218 seconds