"Making oil" is a common problem with unit injection engines when the "jumper" lines leak. The jumper lines are the lines that bring the fuel to the injectors from the fuel pressure rail and then return excess fuel to the return rail in the cylinder head. Thus, two lines per injector.
The jumpers have flared connections and, when overtightened, have a tendency to crack at the base of the flare. Even when torqued properly, vibration will get them to crack eventually. When I did 6-71 tunes for a living, I would routinely replace these lines and carefully install them. Cheap insurance against making oil.
In addition to the jumper lines (which I always suspect first) it is possible that an injector could be leaking from the body. Also, if you are using a gear driven pump, it could be leaking into the crankcase if the oil seal has failed. These are fairly rare occurances though.
One thing that is not so rare is that you could have one or more injectors "dribbleing" because the pintle is not sealing. If the engine has been losing prime and taking longer to crank recently, then you should pull the injectors and have them tested. This condition is one of the most damaging in that not only does it dilute the oil, it also washes down the cylinder wall of the offending injector and causes rapid rihg and liner wear. But, from what you describe, I suspect one or more jumper lines have failed.
Sorry to hear you're having troubles.