[If the gauge does not move (work) for these checks the gauge is bad.]
Oil gauge not reading (working) right try these two test that may solve your problem.Works for me.
Chevrolet and GMC Pick-ups 1967,1968,1969,1970,1971,1972,1973,1974,1975,1976,1977,1978,1979,1980,1981,1982,1983,1984,1985,1986,1987.