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I noticed when changing the oil on my '98 XJR that the filter was oily and there is a line above it which is weeping. I suspect it goes to an oil cooler. It's got a push fit quick release fitting on it. I should have got a picture, I'll add one here later on.
Can anyone advise what this line is and where it goes?
Do these fittings generally weep or is this rare?
How likely is it that a new seal will fix the issue? Or is it usually a different issue?
You probably refer to the push-in connector (circled on the picture) for the power steering fluid line. Usually. the power steering lines weep at the crimps of rubber hoses to metal pipes or fittings but it may, in your case, be the o-ring inside the push-in connector so you can give it a try. The o-ring is JLM20672 or you can try to get it (Viton), in the required size, from a seals/hydraulics shop.