Oil blow back from oil cap
Clogged oil trap (PCV system, positive crank case ventilation). The hoses and oil trap need to be replaced (due to become brittle, dry rotted, and clogged) as well as cleaning out the sludge in the bottom of the engine block. The parts cost about $150 last I checked, and you will need to remove the intake manifold and spark plug wire cover to access the hoses and oil trap. On the bottom of the trap it connects to the engine block where you have to clean out the oil sludge. If you do not clean out the oil sludge it will still create back pressure through the oil cap and dip stick. I actually did an oil change at the same time, and drained the oil first and left the drain plug out while. I sprayed Sea Foam and compressed air down there to get the sludge out. I also used a coat hanger and brush to scrape/scrub it out. Worked good.
SOURCE: volvo 960 estate blowing oil from the oil filler
Your PCV / Oil trap is likely clogged. I have had some luck running Mobile 1 Synthetic oil and half a can of seafoam in the engine oil to clean things up but it is likely that you will have to replace the pcv system.
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