Oil light flickers when in idle. Oil on dip stick measures fine.

First....try this test. If you don't want to mess with the test, check the connector. If it is fine, replace the oil pressure sensor:

Testing

1. Turn ignition ON (engine off ).
   
2. Verify if the oil warning lamp lights.
   
3. turn ignition off.
   
4. Check the engine oil level. Adjust as necessary.
   
5. If engine oil level is within specification disconnect the engine oil pressure switch connector.
   
6. If the oil warning lamp goes out:
   
   • Remove the oil pressure switch.
     
   • Connect an oil pressure gauge in its place.
     
   • Start the engine.
     
   • If the pressure reading is 4.0 PSI or greater at idle :
     
     • Allow the engine to reach normal operating temperature.
       
     • Check if gauge reading is 4.0 PSI or greater with the engine fully warm and at idle.
       
     • If pressure gauge reading is 4.0 PSI or greater replace the oil pressure switch.
       
7. If the oil pressure warning lamp doesn’t go out when disconnecting the oil pressure switch connector:
   
   • Disconnect the instrument cluster.
     
   • With an ohmmeter measure the oil pressure switch sense circuit to ground.
     
   • If the resistance is below 5.0 ohms, repair the oil pressure switch sense circuit for a short to ground.
     
   • If the resistance is above 5.0 ohms, repair or replace the instrument cluster as necessary.
     
8. If the oil pressure warning lamp doesn’t light when turning the ignition switch on, disconnect the oil pressure switch connector.
   
9. Connect a jumper wire between the oil pressure switch sense circuit and ground.
   
10. If the warning lamp lights, replace the oil pressure switch.
    
11. If the warning lamp doesn’t light, keep the jumper wire connected and disconnect the instrument cluster.
    
    • With an ohmmeter measure the oil pressure switch sense circuit to ground:
      
      • If the resistance is above 5.0 ohms repair the open oil pressure switch sense circuit between the switch and the instrument cluster.
        
      • If the resistance is below 5.0 ohms remove the oil pressure warning lamp from the instrument cluster and inspect it.
        
      • Replace the lamp if open.
        
      • If the lamp is in good condition, replace or repair the instrument cluster as necessary.
        

Install a mechanical guage to test the actual pressure, if its fine the sending unit is faulty, if nor remove the oil pan and check the oil pickup for blockage,