| The problem is water vapor pushing out from the house. Latex tends to be more permeable than oil, so stick with it. There are several approaches. One is to add ventilation to the siding to let the vapor out. Of course, that allows warm air out all winter. The other is to tighten up the walls inside adding vapor barrier. I think Shirwin Williams sells a vapor barrier paint.
I like my solution, vinyl. In 1985, I ripped off the shabby hardboard siding. I put on 1'' foil covered polyamide foam, and then vinyl siding. I also covered the trim with prepainted aluminum. My gas bill held even that year. Everyone else's took a big jump. Haven't touched the outside of the house since and see no reason it will need work in my lifetime. | 
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