Cryptic crossword clue
Diesel manufactured including new source of oil 7

The most common and most likely answer to this crossword clue is the 7 letter word LINSEED

I've seen this crossword clue in The Daily Telegraph
L
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Buddy explains!

The straight part
We know that "source of oil" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case source of oil = linseed.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does LINSEED mean?

LINSEED noun
  1. The seed of the flax plant, which yields linseed oil.

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