African tree cultivated as a source of oil in West and Central Africa, where it originated, and in Malaysia and Indonesia, and as an ornamental tree in many subtropical areas; or, the American oil palm, Elaeis oleifera, originating in Central and South America and sometimes cultivated under the erroneous name Elaeis melanococca, the oil of which was probably used for making candles by the early American colonizers.

The African tree is the more important commercially. It has many tiny flowers crowded on short branches that develop into a large cluster of oval fruits 1.5 inches (4 cm) long, black when ripe, and red at the base. The outer fleshy portion of the fruit is steamed to destroy the lipolytic enzymes and then pressed to recover the palm oil, which is highly coloured from the presence of carotenes. The kernels of the fruit are also pressed in mechanical screw presses to recover palm-kernel oil, which is chemically quite different from the oil from the flesh of the fruit.

Palm oil is used in making soaps, candles, and lubricating greases and in processing tinplate and coating iron plates. Palm-kernel oil is used in manufacturing such edible products as margarine, chocolate confections, and pharmaceuticals. The cake residue after kernel oil is extracted is a cattle feed.

The American oil palm resembles the African in flowers and fruit, although it has a quite different overall appearance. The trunk of the American oil palm creeps along the ground, and its leaves are flat, while the African tree has a straight trunk and leaflets attached at various angles.