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98 OBW, been having this issue since got the car some 6 weeks ago. There is an oil leak on top of the engine, passenger side. I've been blaming it on the power steering leak, and it did seem like the pump and the fluid tank o-ring were leaking. Finally fixed both yesterday, 1-minute liquid gasket seems to have taken care of it, and no leaks around it today. But I was looking at it outside in good light, and noticed another oil collection that seemed to be around the tip of the head gasket that you can see from the top. I tried to take pics, but they didn't come out well enough to see it, will try more later if needed.

 

I hope that's not the head gasket leak, but really I can't think of anything else that could be leaking oil in there. If I were to estimate, it leaked about an oz a day before, and mostly collected right under the steering fluid reservoir. I haven't noticed any appreciable drops in oil level. I'm pretty sure that it's not the valve cover gasket because those are nice and clean. Also haven't noticed any signs of possible oil/coolant mixing when I changed the oil last week. The only thing that bugs me a bit is a drop of oil on top of the oil pressure sensor.

 

I'm pretty new to the DIY thing and to Subarus, so apologies if my questions are totally off the wall, and really appreciate all the info and advice I get from the experts here. I hope it's not an HG, and that it really was the PS fluid, but want to make sure just in case. Could HG only leak oil and not oil + coolant?

Edited by Kwhistle
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I think the OE pressure switch is about $15, but it really doesn't look like the problem. It's all dry around it. The problem is more below the PS fluid tank and the area just to the side of it.

 

Here's a pic, with red arrows where I've noticed the oil before, and blue where I noticed it today.

leakb.jpg

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