Oil in Distributor
It's been a long time since I've faced this issue. To my recollection there are two causes for oil accumulation in the distributor:
To prevent oil from getting up into the distributor there is usually a rubber-like "O-ring" in the distributor [near the bottom] to seal the passage. If this O-ring is worn, then oil can get past it.
There may be other causes, but these are the ones that come to mind at the moment.
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