Seems like peanut butter and peanuts are deemed one of the good foods to eat, but how about peanut oil?

I LOVE to stir-fry broccoli in a bit of peanut oil, then add soy sauce and a dash of sesame oil after removing from the heat. It's my kids' favorite vegetable.

Any reason not to have this on my cutting diet?

Peanut oil is ok in moderation. It's no flax, but as long as it fits into the diet go for it. Just don't depend on peanut products as sole source of nutrition.