Crude oil is separated into its different components, which includes a heating and cooling process, boiling the oil into vapor and then distilling it. This process is known as Fractional Distillation. With more updated techniques the oil can be further separated chemically, this delivers the ability to break some of the already separated fractions into smaller components based on demand in the market (ex. diesel into gasoline)
Refineries must further treat the separated components to remove impurities. The process is a bit more complicated than this, I’ve included a link which goes in to greater detail.
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