A high-sensitivity capacitive oil deterioration and level sensor (20) includes a conductive housing member (22) with an inner surface (30) defining a ground electrode and conductive inner member (24) with an outer surface (34) defining a measuring electrode. The housing member (22) is adapted to provide a fluidic connection between an oil container (38) and a gap between the ground electrode (30) and the measuring electrode (34). The sensor (20) also includes electronics (50) adapted to employ this capacitor geometry to generate signals indicative of a degree of deterioration and a level of the oil within the gap.
