I think the other contributors have pretty well covered the answers, but . . .
1. When you say too much oil, are you talking about oil in the front end of the housing; i.e., in the impact assembly? If so, ideally it should be half full of SAE 20W or 30W non-detergent motor oil. If you remove the plug, set the tool upside down on the bench, and turn it so the fill hole is at 3 o'clock or 9 o'clock, it should be filled to that level.
2. Or when you say too much oil, are you talking about the oil you put into the air intake? If so, ideally it would be air tool oil which is a very light weight oil. Many people use ATF, Marvel Mystery oil, machine oil, etc. Not ideal, but usually work satisfactorily. If you put motor oil in the air intake, it needs to be flushed out. A teaspoonful of solvent such as your parts washer solvent is adequate and should be followed by air tool oil. Just air tool oil alone can also flush it out if you do it 2 or 3 times. You cannot harm the tool with too much air tool oil into the air intake. It might be a bit messy, but the surplus will simply, and pretty quickly, be blown out the exhaust.
3. The tool is "rated" at 90 psi; i.e., that's the pressure at which it will produce its rated torque. But as others have mentioned, that's a flowing pressure and in order to have that pressure, you need your pressure regulator set to 100 psi or more. I don't know anyone who bothers turning down the pressure on their compressors at all. If you have 150-175 psi, the impact will have more power than its "rating" and you might break something. You will also wear out the tool sooner if you're using it all the time. Personally, my compressor maintains 135-155 psi and I run it wide open for my IR231 impact, but my impact is only seldom used now so it'll probably outlast me.
4. You can usually use a half inch impact with a quarter inch hose, but you'll have more power with the 3/8" hose.
So . . ., if it's oil in the impact assembly, drain some out, turn up your air pressure, and get a larger hose, and you should be good to go.
And of course, we're all assuming (yep, could be wrong) that you have a model with oil in the impact assembly instead of a model with grease. Too much grease in the impact assembly will not hurt a tool, but will reduce power until some of it works its way out.