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Roaro, check the following: 1. Put in dead head turn on water the fire up compressor, check relief valve at to gold cylinders see if you...
Assuming you know the gage is good and compressor is Not loading and deadhead plug in hose end and All valves closed no leaks...should...
Seco 500 is all I would use, cheap no, but all standard "compressor" oils will break down quickly at 3-4x the pressure they are designed...
The more I think about this, the more I think @Sergey1972 is correct in that the issue is that your barrel has too much gap to the mag...