If the oil isn't milky, then we can rule out water from the off can't we
So it is petrol.
If the rings were worn enough to let petrol past (to any great degree) then they would be worn enough to let oil up .... i.e. it'd be smoking like a trooper and using oil ...
So its the carbs overflowing and the petrol going in the breather ...
either that or you have made a machine that makes oil out of nothing and have solved the worlds oil problems!!