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I have oil leaking from a spark plug socket on my 1981 Volkswagen Rabbit pickup truck. Before you ask, it's swapped with the 1.6 gas motor instead of the 1.6 diesel.

The oil leak appears to only be coming from cylinder 1.

Here's a picture if that helps. Note that the engine is pretty filthy because it used to have a notorious valve cover gasket leak but that has been repaired. I just can't be bothered to clean it as I've tried a power washer and the stuff just wouldn't come off. Oil leak

I do not know the mileage on the engine nor how many miles have been put on it. The odometer is broken and the previous owner said he does not know how many miles were on the engine when it was put in.

It did idle pretty rough but I ran some seafoam through and that fixed it. It also has brand new E3 spark plugs.

If you're wondering 'where's the question' my question is what is likely causing this issue?

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Are you sure this is oil and not some other fluid (gas, coolant)? How is it you know for sure it's oil? Also, if you take some carb cleaner or engine gunk remover to it, I bet it would all come right off. –  Paulster2 May 30 at 14:18
    
I just did a oil change so the color of the oil is similar to that of gas. It didn't have a gasoline type smell to it. –  Alec May 30 at 14:51
    
I don't quite understand why there would be coolant coming out but I'm definitely not a well seasoned mechanic. I should say I haven't noticed a coolant loss but I have had issues with my oil levels going down and sometimes when it's running I can faintly smell oil. –  Alec May 30 at 14:59
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It probably is oil, but I would highly doubt it is leaking from the sparkplug hole (or area), but rather probably from somewhere up above it, like the valve cover. Oil can be deceptive, especially new oil as to where it is coming from. Best I can tell you is clean it as best as you can, then look for the oil sheen. As far as cleaning it, carb cleaner can do wonders, as well as engine gunk cleaner. –  Paulster2 May 30 at 15:13
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Sorry, I edited the above comment. Carb cleaner would work good. If that is not available (or procurable), you might try Dawn dish-washing liquid. It is very good at cleaning oil. It looks as though there is a lot of carbon buildup as well, which is way harder to clean. Carb or brake cleaner is by far better than anything I know at getting the carbon off, other than a stiff wire brush and some elbow grease. –  Paulster2 May 30 at 15:20
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