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Agreed, but it is hard to tell. Is the pipe wrapped with heat reflective tape or is that just some type of duct tape? It looks like it wore through the tape and the metal from friction. It looks like it melted because of the impression from the braided band, but that is just micro vibrations creating that effect.
On a separate note, the oil line will get very, very hot, but not hot enough to melt metal. If it did then I would imagine it would melt before melting something else.
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