Yes it is an indication of water. Was it hot when you drained it? Do you do a lot of short trips? Condensation forms with temperature inversions and unless you are running your oils long enough to cook the water off you will have water in them.

 

I don't tend to do many short trips, but I can't speak for the previous owner. Hopefully all the new fluids won't get contaminated.

Simon

 

It also depends on the lube. I have seen redline, heavy go in bright red and come out a creamy strawberry. Just the nature of the lube. Some thing about entrained air.

 

You might want to flush it out good with some solvent.

Get as much of that moisture out as you can.

Refill it and then check it again in a few thousand miles.

Maybe it was pressure washed and somehow got some water into it.

Maybe someone "added" some water mistakenly... ( that's a stretch )

Good Luck.

John

 

I agree with John. I used to use Redline, and noticed the white creamy look. Sent it in for analysis, and it came back emulsified (water contaminated), and the oil tested as a 250 weight. It went in as a 90w. Not good. Don't use it anymore. You might want to send a sample in if it's still available.