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It is perfectly safe. Spontaneous combustion onlym occurs with those oil types that oxidates heavily, like linseed oil. And that won't even do it if kept under a lid. My furnace burns from the top down, blows the gases through a hole in the bottom and adds air for a second combustion.

I have a metal bucket that some woodturner made a tight fitting lid for by my furnace. I keep it full of chips ( Usually from the lathe) soaked in diesel. Load the furnace, drop a little of that on top with a small metal scoop, I keep in the bucket. Toss in a match and turn on the blower. Voila...