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An oil furnace is a type of heating system that uses oil as its fuel source to provide heat to a building. The oil is burned in a combustion chamber, which heats up the heat exchanger, and then air is blown over the exchanger to warm it before being circulated throughout the building. Oil furnaces are commonly used in areas where natural gas is not available, or where electricity is more expensive. They can be highly efficient, with some models achieving AFUE ratings of 85% or higher.
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