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Is that at idle with a hot engine? And what viscosity of oil are you running? What part of the world are you in (what daytime temp)?
 

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Is the sensor 1-wire or 2-wire? If it's 1-wire, it has no dedicated ground wire, it relies on the threads in the block to make the ground. And if you use teflon tape, that insulates the ground and gives an incorrect reading.
Some sensors have a thread cut such that it's tapered and makes a tight oil seal without teflon tape, so that the ground connection there is tight.
 
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Yes, because normal oil pressure will be between about 8 psi to 14 psi at idle, to about 55-70 psi at highway speed, depending on engine temp and RPMs.
 
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