Oil Pressure Sensor wire has a bad connection or disconnected or the Oil Pressure Sensor is defective. There could be a problem somewhere else but these 2 things are the most common problem. I don't know exactly where the sensor is on your car but should be somewhere around the oil filter. If you ground the wire to the sensor with the ign on the gauge should read 0 psi. If it does then the circuit is good and it needs the sensor.
Paul
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84 500 SEL (307,xxx miles)
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