Most likely blown head gasket but for some reason you have water or coolant in your oil
Yes, especially if the vehicle is operated on short trips. If your worried about water in the oil, check the dipstick. If it looks milky brown, then you may have problems.
Milky oil is a sign of moisture, if you've hit a puddle or had some high humidity it's possible some water got into the cap of your dipstick. However, if your oil on the bottom ' read ' section is the same color, or is streaked with it, you have some form of moisture getting into the system. Generally when this happens your head gasket has blown and is leaking coolant into the system. You'll notices a perceptive drop of coolant in the system.
If it is Saab900 SE (NG, I presume) it is attached to engine oil cap on top of engine (its big and yellow...can't miss it.) Turn the cap, pull out the dipstick attached. Yellow-brown tip indicates oil level.
If the engine is the 2.2L, the dipstick is attached to the oil cap.
Check the oil dipstick. if it is milky white that is evidence of water or moisture. also remove the oil fill cap from the valve cover and look for moisture
The oil dipstick is built into the oil filler cap. Unscrew the cap, pull the dipstick out, wipe it dry and reinsert it. Remove it again to read the oil level.
Remove the oil fill cap which has a built-in dipstick. Wipe the dipstick with a clean rag. Stand the bike straight up in the riding position (not on the kickstand), replace the dipstick and remove it again. Check the level and color of the oil on the dipstick. * Note: When replacing and removing the dipstick, try not to shake the bike around as this will give a false reading.
There is no transmission fluid cap as such. The dipstick is the closest thing there is to a cap. If you need to add fluid simply pour the correct fluid down the dipstick tube.
In the dip stick cap.
connected to the oil filler cap
Condensation of moisture mixed with the oil film inside the cap. If oil in oil pan is not "milky" you are ok.
My 96 Sunfire has no red cap, it has a regular dipstick. You'll want to find a small funnel. The fluid goes where the dipstick is supposed to be. I would also go to the parts store and get a new dipstick.