It is a versatile oil that can be used both internally and externally. For external use, coconut oil may be used as a moisturizer or added to bath water to increase skin softness and relieve dryness. For consuming, coconut oil is an excellent source of clean-burning energy choice, containing medium-chain triglycerides. The health benefits of coconut are wide and varied: The MCFAs in MCTs are readily used by all body cells for energy.