So, i took a coworker home just now, pulled in his drive way and he told me to move out quick, Found this

So oil was all over where there are red circles.
Along with his driveway

Headgasket? I can't tell where it's coming from
what do you think?
1992 cherokee 4.0 I6

Drove it back to work and it was still oily, just not as bad

 

The one on top is your heater control valve it would leak antifreeze possible oil leak from oil filter adapater. Hard to tell from pics I would spray it down with some break cleaner spray and see if you can telll where it is leaking from. The one circled on bottom looks like oil pressure sending unit they are bad about leaking too.

 

Jeepride is right about the heater control valve, it only holds/moves coolant - SO check that off the list, it isn't that.

Until you clean it, open the hood and run it while you watch it may be difficult to assess.

Two questions/thoughts: If there was oil coming down from the gasket, wouldn't you see the oil from up top headed downward? Or from the front of the engine bay down the sides towards the back?

I would clean first and go from there.

 

the one below the distrubtor is the oil presure switch, and they tend to leak when they fail or often than actually stopping function. Clean everything up start the motor and look for the leak.

 

K well I didn't think that would leak oil. When i first noticed it, i took it off and there was oil all over the sending unit. My oil pressure on my gauge has always been funky. It looks kinda like it's hooked on the tach. As in it goes up to like 50 while on the pedal and like 30 when coasting. Anyways oil was dripping from it. So that can be bad?

 

Yes it can

 

if oil is dripping from the sender or plug it is bad, it might still be reading pressure, but it wont be accurate or last for long. It probably spraying a mist now that will turn to a steam, then your motor will sieze. 20-30 psi at idle and 40+ at speed is normal, on the stock gauge. With the stock gauge that fact that is moves with revs tells you you have pressure, it is really a mobile idiot light. Fluctuation at steady revs is a sign of a failing sender. the only way to get accurate pressure reading is external gauge or aftermarket gauge

 

So when I looked at this when it just happened oil was dripping from this and the connectors were oily. So change the Sending unit that is attached to the block?

Also sorry for more stuff, my speedo doesn't move anymore and neither does my clock or trip. Any thoughts on that as well

Damn thing, I Show it some love with a lift and look what it does to me

 

yes change your sending unit if you see it leaking they make a special socket to fit over the sending unit.makes the job a little easier.

 

thats not funky, thats how oil pressure works

 

Speedo/ODO sender in on the back of the transfer case, check the wire may need ne sender. take the sneder out and compare it to what they give you at the parts store, there are 3 or 4 different types used through out the production runs. Get a garmin for speedo and you will always have a low milage XJ.

 

I recently made the discovery of a small dime-sized oil pool under my truck. Upon opening the hood, it looked very much like yours, oil everywhere, dripping from the valve cover down the side of the engine. This made me extremely worried, I thought I had the infamous cracked head. Had to degrease the engine in order to find the genesis of the leak, but I ended up having to replace the valve cover gasket, whew.....