Carbon monoxide is a by-product of combustion, present whenever fuel is burned. It is produced by common home appliances, such as gas or oil furnaces, gas refrigerators, gas clothes dryers, gas ranges, gas water heaters or space heaters, fireplaces, charcoal grills, and wood burning stoves.arbon monoxide is a by-product of combustion, present whenever fuel is burned. It is produced by common home appliances, such as gas or oil furnaces, gas refrigerators, gas clothes dryers, gas ranges, gas water heaters or space heaters, fireplaces, charcoal grills, and wood burning stoves.