1995 Jeep Cherokee 5LBS OIL PRESSURE

Well, if you're really lucky, the oil pressure sending unit has popped and is spewing oil onto the exhaust and giving a low pressure reading. To replace the OP sender is probably a $50 to $100 job. But, if you're not so lucky, here we go. All of the oil pumps I've seen fail in the past 25 years, I can count on one hand. And most of them were from plugged pickup screens from lack of oil changes. Continuos low oil pressure is usually caused by worn engine bearings. Pressure will usually start out fairly high and drop as the oil warms up. 120K on a Jeep V8, is not really a lot, if the maintenance has been kept up. There are other factors to consider before paying out for major engine work. Oil consumption, condition of the vehicle, fuel consumption. To replace the engine you are looking at $2500 to $3500.
Hope I've help you in some way.