So far there has been no common opinion on oil source of the Chepaizi swell in the Junggar Basin. Therefore, it is difficult to determine the pathway system and trend of hydrocarbon migration, and this resulted in difficulties in study of oil-gas accumulation patterns. In this paper, study of nitrogen compounds distribution in oils from Chepaizi was carried out in order to classify source rocks of oils stored in different reservoirs in the study area. Then, migration characteristics of oils from the same source were investigated by using nitrogen compounds parameters. The results of nitrogen compounds in a group of oil/oil sand samples from the same source indicate that the oils trapped in the Chepaizi swell experienced an obvious vertical migration. With increasing migration distance, amounts and indices of carbazoles have a regular changing pattern (in a fine linear relationship). By using nitrogen compounds techniques, the analyzed oil/oil sand samples of Chepaizi can be classified into two groups. One is the samples stored in reservoir beds of the Cretaceous and Tertiary, and these oils came from mainly Jurassic source rock with a small amount of Cretaceous rock; the other is those stored in the Jurassic, Permian and Carboniferous beds, and they originated from the Permian source. In addition, a sample of oil from an upper Jurassic reservoir (Well Ka 6), which was generated from Jurassic coal source rock, has a totally different nitrogen compound distribution from those of the above-mentioned two groups of samples, which were generated from mudstone sources. Because of influence from fractionation of oil migration, amounts and ratios of nitrogen compounds with different structures and polarities change regularly with increasing migrating distance, and as a result the samples with the same source follow a good linear relationship in content and ratio, while the oil samples of different sources have obviously different nitrogen compound distribution owing to different organic matter types of their source rocks. These conclusions of oil source study are identical with those obtained by other geochemical bio-markers. Therefore, nitrogen compounds are of great significance in oil type classification and oil/source correlation.