Yes I do think that's what the problem is, and to be honest these cars aren't the best with the gauges whether the oil or voltage. Not a month ago my customer from Florida sent me a small video of the oil warning light fluttering on/off and I told him the same thing. You could do two things to be certain. Either change the sending unit.....(be sure to make sure the hole you screw the unit down into is clean of debris when you mount the new one), or two put a mechanical oil gauge in the hole and check it that way. If it's just the sender when you put the mechanical check gauge on it will stay consistent. My money is on the sender or the plug going to it shorting out. Check those first. It's a bit of a hard location, on the back side of the intake manifold close to the firewall.