Magnetite powder for kerosene-based ferrofluid was synthesized by air oxidation of waste acid containing $Fe^{2+}$ and $Fe^{3+}$ ions in the pH=11 at $60^{circ}C$. Stable kerosen-based ferrofluid was prepared by addition of polyoxyethylene nonylphenyl ether(POENPE) to the magnetite containing water. Dispersion mechanism of an addition POENPE to the magnetite was examined by means of the fraction of solid dispersed FT-IR spectrum. And magnetic properties of kerosen-based ferrofluid were examined by method of Vibrating Sample Magnetometer. In order to remove oil on the water surface by an addition of kerosen-based ferrofluid, the optimum conditions were examined.