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oil leak 850 1994

Is it the engine or steering rack that you're seeing leaking? I see a few steering racks with seapage in the area where the column shaft enters the rack too but as long as it's not actually dripping steering fluid I wouldn't yet replace the steering rack IF that's what you're seeing.
If it's the rear seal, it'll be on the firewall side of the engine dripping down and it'll be dripping from a small "weep hole" at the very bottom where the engine and trans bolt together. A quart burned in 3K miles is fairly normal consumption for almost any engine.
When in doubt, have it degreased and checked by someone familiar with your car.






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