Oil leak or axle seal?? weird

[jeffescortlx]

2002 XLT V8 4x4 111k

I just did a oil chance and noticed what looked like a axle seal leak from the front passengers side output seal. I could see the output is wet with oil and can see where it's spraying on the steering rack and lower control arm and engine mount and any thing in it's spay path.
So I removed the diff plug to add oil, but it was plum full. But I was a 1.5 quarts low on engine oil since the last change (went a little longer then I shoud of). I looked every where for a oil leak but cant find any thing leaking from that side of the engine.
This is not the first time I've noticed it being damp with oil on the front axle output, other oil changes I've noticed it too, but I've never needed to add axle oil.
What could be leaking? The under side of the valve cover feel's dry.

 

[mvvette97]

Possibly power steering fluid or maybe the seal in the timing cover. Is it wet around the balancer on the front of the engine? Also if it's oil from the differential you can wipe your finger in the oil and take a wiff. Gear oil has that smell that no other oil has, it stinks!

 

[jeffescortlx]

Possibly power steering fluid or maybe the seal in the timing cover. Is it wet around the balancer on the front of the engine? Also if it's oil from the differential you can wipe your finger in the oil and take a wiff. Gear oil has that smell that no other oil has, it stinks!

I dont think it can be the power steering either, I checked that to and it was full to the top. The only fluid that is disapearing is engine oil (~1 qt per oil change).

Yes, the diff fluid did have a very strong smell, and it was gray in color to. I was a little worried about that.

But the fluid that I see dripping off the axle area looks (and smells) like engine oil. I dont think it's the front balancer either, the front of the motor is clean and dry, only place I see oil is the passengers side of the engine, but I cant pin point where it's comming from with out yanking the motor out.
Is there any thing else on that side of the block or head?