Can someone please let me know what this hose is or were it goes and why it has what looks like oil on it. Thanks
it.

 

Could be part of a Crank Case Breather? Try tracing it and see if it originates from behind the air cleaner assembly or if not from where?

 

The left end looks like electrical plastic conduit (ant-chaff) and the right end looks like a fabric wrap for electrical cable. There is a transmission vent hose from the trans. cover to the space between the trans. and inner primary cover. check for oil vapors there, also check the top of the rear cylinder for an oil seepage problem. You'll just have to use a good flashlight and look around.

 

Try throwing some flour on it to find the wet spot.

Or was that for something else?

 

Flour can get gummy when you rinse it off. I'd suggest baby powder. Either way, it's a proven method. You can also add a UV dye to the oil and use a blacklight (often included with the dye) to track down leaks. I've done it a few times and it has honestly helped me track down some pretty mysterious leaks.

First step is always a really thorough clean and degrease so you don't go chasing phantoms.

...and, yeah, that's a wire bundle.

 

So it must be leaking dirty electrons! (Goes with the guy with the cut wire that goes to the vapor canister., I guess...)

 

Looks like you already know it's an electrical conduit.

The WHY is it wet part is because it is sitting below the starter motor.
Yeah, you read that right.

I'm pretty sure that the oil you're seeing is coming from the primary, through the shaft seal on the starter, running along inside the bottom of the starter motor and dripping out through a small hole in the bottom of the starter motor.

I know, sounds like I've been drinking too much of my own bath water, (so true anyway), but pull the starter and disassemble it.
I'm betting that you'll see the bottom of the motor is wet with oil and there's only one place it can come from, the primary.

I had this happen some time ago and took months to find it.