Sorry to all purists, but I didn't use teflon tape on the installation. The sender I put on was made by fibi-bilstein.
I took off the connector wire cap and gave it a shot of WD40. Ran the engine for a couple of minutes in the garage and now the gauge drops down slightly to 2.7. BTW, I use 10W40 oil. Gonna do an oil change this weekend and take it for a long test drive. I suppose things are okay now because when I turn the key to the second position, the gauge reads 0.
Thanks again folks,