It's not meant to, that's the non return valve (NRV) on the tank to show you where the unload pipe from the relief valve connects to.
Try running the compressor up to pressure and switch off at the mains (not the red switch on the black box) before the pressure switch operates. If you don't get any air escaping the relief valve in the pressure switch is ok.
IMPORTANT If you do this, turn the knob on the pressure switch to "OFF" before switching the mains back on, otherwise you may damage the motor. If you get a continuous hiss instead of a short burst it's the non-return valve on the tank.
i finally took compressor apart again, the non return valve on the bottom of the control unit had a chunk of black carbon holding it open,as did the valve between the pump and tank, would be better to have these with a filter before them, have pics
will upload later
sam
here are the pics as promised, the long brass one is the one which has been playing up most, the oil is going to get past the rings weather they are worn or not, im not bothers aslong as its not using to much, it builds up to preasure and works good, all im worried about at moment.
when it was usualy it did alot of painting, then sat around for a few years then was passed onto me and i repaired it, i think its carbon from inside the line what has come off since i have started moving it around
thanks will give it ago, hopfully the carbon will clear, does this happern on most compressor, that pipe between the pump and tank gets really hot, any pump will through oil out so im guessing it will burn up as soon as it hits that pipe
sam