So I noticed a burning oil smell one day and when I got home I poped the hood. Inside by the radiator was some black oil all over I'm guessing gear oil. I saw a lil white connector attached to a hose looking up at me which I'm guessing is the culprit. Now the hose runs to the top of the front axel. I noticed the back has one but that one is pointing to the ground, is there a hose that connects to this or is this hose not I. The correct location? It's on a 99 durango with the 5.4l 4x4

 

It's the axle vent. Don't know why you got axle grease coming out of it though.

 

Yep, that's the front axle vent hose, and it's not supposed to connect to anything. If there is oil coming out of it you need to open up the diff and see what's going on ASAP.

 

+1 That vent allows the expansion and contraction of heat build up during driving inside the axle. Those hoses are supposed to hook to the top of the axle and come up onto the frame. The front will come up into the engine bay, the rear usually goes up and is supposed to attach to the frame. The little colored cap looking thing is supposed to be on the end to cover the output side so no water of grime get into the hose and eventually make it down into your axel contamination your fluid. You should get a new hose for a few bucks and replace the one on the rear.

Now you could have a few issues on your front. One it could be overfilled or water could have gotten into it from driving in water or mud, especially deep water. Also could have gotten plugged built up pressure and blew it out with some fluid. Further some mechanical issue. First thing first, I would check the fluid level and look for contamination by giving it a quick drive and hurry and check the fluid. If water or contamination in in the case it will look like milky mud.

If there is a mechanical issue you could be heating up the fluid and vaporizing it...ect.