It's common for oil to spray from the cap when you remove it because it is being thrown around by rotating parts. If a lot of air is also blowing out, that could be due to worn piston rings.
The place to start is with a compression test. If the numbers are low or uneven, follow that with a cylinder leakage test. That will show why the compression is low. There can be leaking intake valves, leaking exhaust valves, worn piston rings, or a leaking cylinder head gasket.
Friday, November 30th, 2012 AT 2:29 AM