Oil can appear on a spark plug for a few different reasons. One possibility is that the oil is seeping past the piston rings and into the engine's combustion chamber. When the engine is running, the oil can be ignited by the spark plug and cause a puff of smoke to come out of the exhaust.
Another possibility is that the oil is coming from the valve seals. The seals can wear down over time and start to leak oil into the combustion chamber. This can also cause a puff of smoke to come out of the exhaust.
If you are seeing oil on your spark plugs, it is a sign that you may need to have your engine serviced. The oil can indicate that something is wrong with the engine and it's not running properly.
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