While checking the brakes on my 1998 S70 I noticed what appeared to be fluid around the
outside of the wheelwell. Further investigation revealed that it was very black and almost like
oil in texture and it appeared to be coming from the outer drive shaft boot next to the wheel,
and was being flung out to the wheel well cover. There was even this black oil on the lower part
of the strut, that comes down from the fender mount. I checked the boot and could find no tears
or rips. It is not brake fluid and I checked the brake lines just to be sure. Anybody got any ideas
what this fluid is and where it might be coming from??

 

Check the clamps to the cv boots. If the oil is thick and gooey, it is most likely your cv grease.

 

You could have a very small pin hole and the Grease will come out.