You have a bad ground. The oil temp sensor is nothing but a resistor that changes according to temperature. We are basically measuring the voltage across the resistor to ground.
First, check your engine ground. It is the most likely source. If not that, check the ground(s) to your instrument panel.
Vic
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 Vic Syracuse
Built RV-4, RV-6, 2-RV-10's, RV-7A, RV-8, Prescott Pusher, Kitfox Model II, Kitfox Speedster, Kitfox 7 Super Sport, Just Superstol, DAR, A&P/IA, EAA Tech Counselor/Flight Advisor, CFII-ASMEL/ASES
Kitplanes "Unairworthy" monthly feature
EAA Sport Aviation "Checkpoints" column
EAA Homebuilt Council Chair/member EAA BOD
Author "Pre-Buy Guide for Amateur-Built Aircraft"
www.Baselegaviation.com
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