Fuel in the oil could mean:

1)Piston rings are bad, possible from excessive cylinder wash down (see next)

2) injectors that are sticking and dumping fuel into the engine. Some places will test injectors or you can upgrade to better injectors if you want

3) melted/damage piston causing gas to not be ignited and end up in your oil.

1st do a compression check then move on from there

 

Have you checked for codes yet?

I washed my old 98 xjs engine and ran fine driving home. Started back up an hour later, and had the same symtoms your having, but when I drove it, it wouldn't shift out of 1st gear.

Checked codes and I had ramndom misfire codes and a throttle position sensor code.

Checked the tps and it was bad(water got in it). Replaced it and she ran fine once again.

I agree it could also be a head gasket, but I always check electrical stuff fist cuz I'm an electrician and don't trust electronics!!!

You may be able to pull your spark plugs and see if there is coolant in the cylinders, but a compression test will tell for sure. My head gaskets ha e always been blown around cyl 5-6.

 

What do you mean the oil is bubbly?

Does it look like a milkshake?

 

bubbly by means of water globs on the dipstick the oil will not look like oil it will look like hot coca .....humm you gave me an idea!

 

How did the compression check turn out???

 

easy way to check if injectors are firing right is turn on the jeep, and tqake a long screwdriver, put the metal tip on the injector and your ear on the handle, you will hear a tick (open and close time for the injector) kind of like when you put a sethescope on your chest to hear a heart beat. you should be able to tell if the are firing right or not

 

Sooo I unpkugged all sesors and wires I could find.. Sprayed out with compressed air amd left unplugged for 24hrs! Plugged all back in and BOOM! Staryed and drove perfectly!! Gas smellwasnt on dipstick had it checked out... (im crazy newb I gues....) Got home wouldnt start.. Charged it checked alternator and it needs replacing... Compression is good! All I need is oil and alternator! crazy!

 

Sooo I unpkugged all sesors and wires I could find.. Sprayed out with compressed air amd left unplugged for 24hrs! Plugged all back in and BOOM! Staryed and drove perfectly!! Gas smellwasnt on dipstick had it checked out... (im crazy newb I gues....) Got home wouldnt start.. Charged it checked alternator and it needs replacing also check engine light popped on and ran the code and crazy enough it was alternator hahah.. Compression is good! All I need is oil and alternator! crazy!