While a damaged sensor *could* potentially allow a tiny amount of oil to seep out if the sealing grommet around it is compromised, this would typically be a very slow leak, not a major one. A significant oil leak would almost certainly originate from somewhere else in the engine or transmission.
Think of it like a dipstick: the dipstick itself doesn't leak oil unless it's physically damaged and the oil is actually above its hole.
If you have a substantial oil leak, the problem is far more likely to be one of these:
* Valve cover gasket: A common source of leaks.
* Oil pan gasket: Another frequent culprit.
* Crankshaft seal: Can leak oil from the front or rear of the engine.
* Oil filter: A poorly installed or damaged oil filter.
* Timing cover gasket: Leaks from the front of the engine.
To find the source of your leak, you'll need a visual inspection of the engine. Look for oily areas on the engine and follow the trail to identify the leaking component. It's also beneficial to clean the engine thoroughly first to make the leak easier to spot after a short driving period. If you're not comfortable with this, take it to a mechanic for diagnosis and repair.
