Most common questions used to investigate
Is there oil on top of your engine?
If there is a considerable amount of oil on top of your cylinder head cover, the leak might be coming from the oil cap (the circular cap with an oil can logo). To be sure, check your dipstick, is the oil level over the normal level?
Check the oil filter, is it covered in oil?
The leak might be coming from underneath, from the oil pan. Is the leak just coming from the oil plug?
Is there oil running down the sides of the oil pan itself?
Is the oil leaking from the sides of the cylinder head cover?
Common conclusions
If the oil level is too high, there is a chance that the excess oil will leak through the oil cap because it will get pressurized when the engine is running. If this is the case, jack up your car, and then look for the oil pan underneath the engine and then take off the oil pan plug to get rid of the extra oil. Release just enough oil to make the oil level normal then replace the plug. Always maintain a normal oil level at all times.
The oil cap might be loose or deteriorated. When the engine is running, the oil in the cylinder heads will get pressurized, and if the oil cap is not properly affixed, the oil will leak through the gap in the oil cap. This can also happen when the rubber gasket in the oil cap has seriously deteriorated. If the oil cap seal is in rough condition, then you need to get a new oil cap and then tighten it down.
If the oil filter is covered in engine oil, it might be loose or installed crooked. If your car is overdue for an oil change then get one, the technician will also be replacing the oil filter, you just need to make sure that the new filter is correctly installed and tightly screwed on.
If there is a lot of oil around the cover plug, you just need to tighten the plug. If this does not solve the problem, the seal around the plug might be damaged too. Replace the rubber seal and replace the plug and this should solve the problem.
The oil pan gasket might be damaged. This is a serious problem that should only be dealt with by a professional mechanic. If the oil leak is coming from the oil pan itself the amount of oil that you are losing might be enough to cause major problems with your car's engine,
If the leak is coming from the cylinder head cover, the gasket must be cracked or worn down considerably. If you have a torque wrench, you can take off the cylinder head cover yourself and replace the worn gasket with a brand new one. The torque wrench is needed because all of the bolts must be tightened at a specific torque pressure. If you are not confident about taking apart your car's engine, have your mechanic do it for you.
The only part left in the engine that could possibly leak oil is the oil cooler. All sports cars and exotic supercars, and some road cars, have a separate oil cooler, this part looks like a tiny radiator, and its responsible for cooling the engine oil down before it gets circulated once again through the engine. Check the lines coming to and from the oil cooler, there might be some joints that are leaking engine oil.
References
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