Mileage: ~118k miles
Back Story:
A week or so ago I noticed that after driving around for a bit and then parking there was a strong smell of oil fuming from the engine bay. I didn't think much of it because I had just taken the car to the Volvo Shop and they did an oil change, it also wasn't leaking oil onto the ground. Well, a few days later I was backing out and saw two or three small oil spots on the ground.
Well, flash forward to yesterday, I was going to wash the oil off of the top of the engine and then see if it leaks again/where it originates from. However, before I left I got the idea to take off the "Volvo 20 Valve" plastic cover and see if any oil had leaked under it.
And now the pictures of the oil leakage...
Pictures:
The plastic cover is off, shows where the oil has pooled:

This is where I think the leak is coming from, I think it is either the actual cap (which I am hoping is the case) or something else (which would make me sad):

Another view:

Questions:
What can I do to clean up the pooled oil? Just use a paper towel to soak it up, the put the plastic cover back on and power wash the rest of it off (some oil is on the plastic cover and some oil is on outter part of the engine on the right side -near the air filter)?
Should I be worried that some oil has seeped into the spark plug area/past the rubber hose thingy?
What is causing this leak? Could it just be that the oil cap is old and not sealing correctly and so when the car runs and is under pressure it leaks out?




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