A malfunctioning ignition coil could result in overheating. Overheating damages the covering of the coil, resulting in tears. This tear results in leaking oil. Again, leaking oil doesn’t only result from the housing of the wire coils. The gap in the spark plugs can also cause it. These bigger gaps are often a result of erosion. Now the ignition coil will work at a higher voltage, and as a result, the coil overheats and leaks oil after breaking. [links]