Oil Leak Question
 

I noticed a small puddle of oil on the drive yesterday. My valley has puddles that were not there last time I checked. I have oil leaking down the rear, collecting on the oil pan. Turbo looks dry. I was about 2 qts low on oil, coolant was a bit low and the oil on the dipstick seemed a bit thin. Dripped off easily. I took it to the local repair shop and the guy said it was leaking around the water/fuel separator and said it would be a quick 50 dollar fix. Can oil leak from this area? I thought only fuel would? Any other ideas?

Check the hpop fittings and the lines to the heads if its in the valley

Thanks
 

Those are both areas that I will need to check next... I guess my main question is whether oil can leak from the water fuel separator??