Low engine oil reading

[Robin Teo]

Hi guys! I am new to your mails. I guess I will enjoy the site.

I own a 1993 W124 200E in the tropical climate of Singapore. 2 weeks back, my engine oil indicator in the front dash panel start to show a reading of less than 1 after running for 5 minutes. First reading in the morning after I had park the car for more than 6 hours will show a normal reading at 3. Previously, it always show between 3 and 2 even under running temperature. A check at my engine oil showed tha the engine oil is not low.

The car seems to run normally without any sign of disorder. The car will be due for a engine oil soon. I intend to have the ATF changed too. Any recommendation to the grades of ATF and engine oil? Any advises are welcome. Most importantly, somebody please tell me what is wrong with the engine oil indicator.

Many thanks in advance.

Cheers
Robin Teo