The oil light is a measurement of the oil pressure inside the the motor. It is not an indicator of how much oil is in the engine, and it is not an indicator of oil in the wrong place inside the engine. There is an oil pump inside the oil pan which pumps oil under pressure to the moving parts as they turn. The oil travels to the main bearings first and to the valve train last. When the oil light comes on it means that either the sending unit is bad or that that there is low oil pressure. When there is low oil pressure, then the moving parts are not being lubricated to the extent that the engineers intended. If the engine does not get oil to the moving parts - IT WILL DESTROY ITSELF.
It means oil is getting where it shouldnt inside the engine..past the valves or rings
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