Need help please
 

I have a 2001 V70XC. The other day it was low on coolant. I could not find a broken hose or a leak. However I did find water in the oil, it has that coffee look to it. I figured it was a blown head gasket. But I noticed there is no oil in the coolant tank. I have driven it only a short distance like this but there still is no oil in the coolant tank. Is this a head gasket or something else? To me there would be oil in the coolant tank if there is water in the oil.

Any ideas or suggestions on this?

water in oil
 

Water could be condensation, usually turns oil greyish. Suggest compression test of cylinders. Drain oil. Change filter, refill oil. Drive about 200 miles, check oil level/color. @ 500 miles do same. @1000 miles do same. Short time test, take a trip @ freeway speed 1/2 hour out, 1/2 hour back. Check oil. Inspect old oil when u drain. 5w-30? Synthetic? Good luck, let us no.

It is condensation.....It seems that Volvo 850's, and S70/V70's are prone to this. We used to get it all the time on our old 850 and XC70. the 850 has just shy of 300,000 miles on it and it stil fine and the XC70 is fast approaching 200,000. Do what MSGTUSMC suggets and you should be fine!

Thank you, I will do that.