Good morning,
OBD1 did not monitor the oil system at all. The ECM was not that smart.
There is a codes stored for the fault in the system. You need to have that code checked so we can further help you.
Not every shop has a code reader for the old systems. Call around to see before visiting anyone who can help you. Once you know we can go after that issue.
As far as the oil gauge, it is possible the check engine light and the oil gauge may be connected as the dash cluster is what they have in common. Check all the connections at the back of the cluster to see if there is a bad or dirty connection. You should be able to reach under the dash and get to the connections.
Roy
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Thursday, December 13th, 2018 AT 5:37 AM