[JoshHawks]

I've been thinking my 325d (M57) has been down on power (low end) + MPG for a little for a while now compared to previous ones I've had, plus I've started to notice quite an intense diesel smell from the exhaust this past week. I noticed the intercooler pipes and air intake pipes are all covered in a misting of oil.

I checked for any loose hoses on the intercooler system last time I changed the main engine thermostat and they still seem fine, however the pipe from the turbo seems like it might have a small crack at the point where it joins the turbo. Spraying some WD40 on it you can see air escaping when you rev. Is this pipe prone to cracking at this point? And would that cause the oil to spray out around this part of the engine bay?

Any help on how to narrow down where this oil is coming from would be appriciated