probably rear crank seal.
Is it definitely engine oil as it could also be the gearbox input shaft seal.
If it's a keeper, remove the box or engine and replace the seal. If not and it's not dripping on the floor, I'd probably be inclined to leave it until other jobs are needed and you can do them all together.
I've never used any of these anti-leak products.
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1991 90 quattro 20v sport
1991 90 quattro
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