The health benefits of peanut oil include skin care, lower cholesterol levels, improved heart health and nervous system. It also prevents cancer, boosts cognitive function, strengthens the immune system, and lowers blood pressure.Peanut oil also contains monounsaturated fatty acids, like oleic acid, which increase the levels of âgood cholesterolâ, called HDL, in the blood.It is also used to decrease appetite as an aid to weight loss.