This wiki segment covers it pretty well
The SAE designation for multi-grade oils includes two grade numbers; for example, 10W-30 designates a common multi-grade oil. Historically, the first number associated with the W (again 'W' is for Winter, not Weight) is not rated at any single temperature. The "10W" means that this oil can be pumped by your engine as well as a single-grade SAE 10 oil can be pumped. "5W" can be pumped at a lower temperature than "10W" and "0W" can be pumped at a lower temperature than "5W". The second number, 30, means that the viscosity of this multi-grade oil at 100°C (212°F) operating temperature corresponds to the viscosity of a single-grade 30 oil at same temperature. The governing SAE standard is called SAE J300. This "classic" method of defining the "W" rating has since been replaced with a more technical test where a "cold crank simulator" is used at increasingly lowered temps. A 0W oil is tested at -35°C, a 5W at -30°C and a 10W is tested at -25°C. The real-world ability of an oil to crank in the cold is diminished soon after put into service. The motor oil grade and viscosity to be used in a given vehicle is specified by the manufacturer of the vehicle (although some modern European cars now make no viscosity requirement), but can vary from country to country when climatic or mpg constraints come into play. Oil circulates through the piston oil rings to cool and lubricate the compression rings. Inside gasoline engines, the top compression ring is exposed to temperatures as high as 320 °F (160 °C).
Oh and the oil you have is correct.
