640 LC4 oil leak question

[ragedmachine]

Hi guys,
New to the forum, somewhat new to KTM's and off-road bikes etc

I've got abit of an issue with my recently acquired 03 640 LC4 supermoto...There seems to be an oil leak on top of the engine where there is a tube that feeds in.

What is this tube? and where is the oil coming from? since the oil is stored below the feed?

Here is what i'm talking about:



Also, would this be causing my clutch to 'lose pressure' during my ride? it seems to regain pressure as I'm using it more, but if I'm going along a straight without using it for a while, the clutch lever seems to be loose unless I clutch in a few times....