• Well, some air filters (life long ones like K&N or Fram) need to be oiled to work properly. However, most paper air filters should be dry. If there is any oil in your air filter you could have a problem. That means that oil is getting into the air intake. Oil is usually contained to the block so that worries me. I'd change the oil filter and if it persists get the system checked. Keep an eye on your fluid levels too.

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