The thermometer dip sticks will probably not show the real oil temperature because they only dip inside the engine oil for a very short distance. The most lenght of the stick inside the engine is in contact with the internal engine air, which is hotter than the oil in the oilsump. So I assume, that the dip stick shows a higher temperature.
Normaly oil temperature above 120°C may become critical (depends on the used oil). The air-cooled engines reach often very high oil temperature - so I use an engine oil with 10W-60 or at least 20W-50 specification, to have some reserve.
I have a similar thermometer dip stick - and I only get nervous when it shows a temperature above 130°C - then I just stop and let it cool down. But I have also reached 140°C without a damage.
An oil-cooler may also be a good investment.
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