Was on vacation this week and the low oil message came on.
Checked oil dipstick and oil level ok. Then the red triangle warning came on and the manual said to turn engine off and have towed. Went to independent Volvo garage (no volvo dealer nearby) and they said it probably was a bad sensor and as long as oil level was ok it was fine to drive. Long story short, drove 800 miles home, no problem. My question is: Would you start with the oil level sensor and if that's not it, what else could it be?

 

What's the VIN? There are various bulletins for oil consumption on that engine.

 

Vin # YV1AS982891088130

 

The fixes don't apply to that engine code (98). If it wasn't low, it could be the sensor. Not very common. If it was low, it is likely burning oil through the PCV or the valves.