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Muzzle down. Keeps the excess barrel oil from migrating into the action.
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Muzzle up, so excess oil from the barrel will further lubricate the action??
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No problem there, just make sure you don't have excessive oil. It's not that hard to do.
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Muzzle up. Oil in the stock is a non-issue, I don't put that much oil on my rifles or shotguns.
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I agree with Scorch.