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Tea tree oil is one of the most extensively researched of all essential oils. Produced from a shrub like tree known as Melaleuca in Australia, according to the University of Sydney, native aboriginals are believed to have taken advantage of its many healing benefits to treat skin conditions for .Tea tree oil benefits, as shown in medical stu.s, including fighting acne, eczema, psoriasis, warts, fungus and skin cancer. Meanwhile, common tree oil uses include shampoo, toothpaste and household cleaner..