It's oil coming from the exhaust. I let the car idle this morning for 5 minutes and revved it 1/2 throttle for a second and it spat out more oil from the exhaust. I think the exhaust side seals are worn out. The car has had an increasing amount of white-grey smoke at idle in traffic. It can be seen during the day as well. It wafts up past the driver's window and is quite noticeable. A cloud is left behind during acceleration, too.

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1991 F250 super-cab 7.3 IDI. (rebuilt by me) Banks Sidewinder turbo, hydroboost brakes, new IP and injectors.
2003 S430 - 107K
1983 300SD - Tanoshii - mostly restored ~400K+.
1983 300SD - Good interior. Engine finally tamed ~250K.
Monark Nozzle Install Video - http://tinyurl.com/ptd2tge