Now that is interesting. I don't know for sure what it is. But I doubt it was for fuel oil. The chimney between the hole in the ground and the house is likely connected to that passageway between the bottom of the hole and the basement. Oil tanks would likely be better sealed (not a plywood top) and would have a smaller pipe going into the building. Even if that wasn't rusty, it wouldn't hold oil very well.
I'd be tempted to believe that is was a curious clean-out for a
wood stove. Or maybe part of a still? Or a charcoal retort? Or a way to cook a pig with the
wood stove?