Hello Peter,
Nice car, I always loved those W111 coupes.
Yes,engine oil does circulate in and out of these later IPs. That is as long as that tiny metal oil supply line between the IP and the engine is not clogged. I always dump some oil in the IP just to make sure everything is lubed up. No need to worry about oil level, since any excess will drain off into the engine block. About a pint will keep you out of trouble. You can add it by removing the barometric compensator or the WRD.