US heart experts say Coconut oil is as unhealthy as beef dripping and butter.  A recent study indicated that coconut oil is packed with saturated fat which can raise “bad” cholesterol, says the American Heart Association in updated advice. Coconut oil is commonly sold as a health food and some claim the fat in it may be better for us than other saturated fats. The American Heart Association, however, says there are no good studies to support this.