Hi; If it is or recently has been really cold where you live, I think I know what's your problem. I had the same thing on my wife's Volvo 360 (B200K engine) years ago, spitting oil all over from somewhere back of the engine. It's a cheap fix and it's easy if you do it now. At cold weather, the flame trap can clog completely and cause the pressure in the crankcase to increase so that a kind of plug (tin cover, looks really cheap) at the backside of the top may pop out, causing this oil mist which rapidly will cover your fire wall.
You must get a new plug at your OEM Volvo dealer (very cheap). Easy to install, use a piece of wood and a small hammer to gently push it in. After that, you need to do something with your flame trap, there are numerous threads on that in this forum. Some, even Volvo mechanics say that you should just take it out and forget it, others stick to regular maintenance (relatively easy and cheap) of this device. If you do NOT do this now, you will over time end up blowing all of the seals in the engine, and the problem gets far bigger.
Last, clean up the mess and your engine is good as new again.
Godd luck - Ola.
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