Blood Oil

Blood Oil is an Raw Material that can be found in the Blood Kelp Zone and Blood Kelp Caves Biomes. Pustules of Blood Oil can be found on the the lower part of Blood Kelp stems and on Blood Cave Roots. It can be harvested by the player without any Tool. The PDA description notes that it is an oily go.

Occasionally they can be found on the seabed around or near the Blood Kelps and Cave Roots like they seem to have fallen off the stem, at some point.

It can, also be spawned using the command "Item BloodOil".