No. 2 heating oil is a type of fuel commonly used for residential and commercial heating. It is a distillate fuel derived from crude oil and is known for its efficiency and affordability. This oil is typically stored in tanks and delivered to homes or businesses for use in oil-fired furnaces and boilers. The composition of No. 2 heating oil includes a mix of hydrocarbons, which helps it burn cleanly and produce heat. It is often dyed red to indicate that it is not subject to the same taxes as diesel fuel, making it a cost-effective choice for heating purposes.