It sure can, just make sure that you buy skin safe fragrance oils. If you have a look in the shopping recommendations forum, you should find plenty of suppliers
Absolutely right! Just make sure that it's safe for cold process soap making. Some great suppliers include: Brambleberry, Nature's Garden, The Soap Dish, Flickers, Snowdrift Farm, and Wholesale Supplies Plus. The reason I say be careful is because I recently lost two batches because of substandard fragrance oils; cheaper isn't always better