Re: Why is oil leaking out of a cylinder head stud/nut?
I would venture a guess it is mixed carbon & combustion gasses that are leaking. As mentioned above, the headgasket is likely leaking. For me, I would do more investigation as I would suspect that cylinder is running extremely "rich" where the plug is fouled and that cylinder is making little or no horsepower. The next thing one needs to determine is whether the deck of the block and/or the head is level too. To fix it correctly may involve more than just R&R-ing a headgasket.
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