With the increasing status of oil pipelines in the national economy and the inevitable aging and stealing of oil, pipeline leakage monitoring has increasingly become an important guarantee for pipeline operation safety. In order to timely and accurately report the location of the leaking point, a virtual instrument was built to monitor and detect it. Through the improvement of the pressure gradient method, the corresponding software system model was designed. Based on the LABVIEW platform, the model can accurately monitor pipeline leakage, and can accurately locate the leaking points by comparing within and among the groups, thus to improve the accuracy of pressure gradient method. By this improvement, the frequency of false positives is reduced, and the function of real-time monitoring and positioning of pipeline leakage is realized.