Yes, oleo is in the scrabble dictionary

...and is worth 5 points by itself.

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oleo

noun

1. Margarine.

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Top Words by points

Points

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oleo

4

Scrabble

2 Letters

Scrabble® Points

el

2

lo

2

oe

2

3 Letters

Scrabble® Points

loo

3

ole

3

4 Letters

Scrabble® Points

oleo

4

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