You're right, it is oil temperature. Though when you turn your ignition on to the first 'click' it will show the amount of oil in your engine, it should go right to the top to show you have enough oil. Then start your engine, the dial should go right down and rise as the engine oil heats up. The engine should not be revved too hard before the dial has atleast moved, if not at normal operating temp as damage could occur - a little mechanical sympathy!!!!
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