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Its possible that the builders used fence paint meant for rough sawn fencing for cheapness or simply ignorance of correct product needed. Who would ask builders to stain a decking anyway? surely a decorator would have more idea than builders? I would have thought an oil based treatment would soak in overnight anyway, its not like engine oil is it!
we use decking oil on hardwood decks when customers request it, only a decent brand and only clear. never had a problem with it, and it literally soaks in as you watch it. There are decking wax based oils which can cause problems