It's definitely motor oil. I looked closely at that sensor, and I can see oil bubbling out of it. It must be bad if my old eyes can see it.
NAPA calls that an oil pressure switch, and they should get it in today or tomorrow. Oddly, NAPA specs say it's a 2-7psi switch. I guess that means it closes somewhere between 2 and 7PSI? or maybe closes at two, re-opens at 7? That seems WAY low.
If I put a proper gauge there, what would it read?