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1991 964 oil level/check engine light

Engine

Vehicle Information: Model: 964; Year: 1991; Body Type: Coupe; Total Mileage: 83000;

checked oil level,dipstick says full,gauge reads low,the dipstick is difficult to read because it seems to smear on the backside of the stick,but it reads full, the gauge usually works fine.the check engine light has come on from time to time.started the car today and noticed alot of liquid or gas /oil spit from the exhaust.never noticed it before.what could it be ?the o2 sensor making it run rich?thats my guess.is it harmful to run the car to much.the light only comes on every once in a while .thankyou much!mike lowry

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