Man, I'm having a go with my Jeeps this month.
We also own a 94 Grand Cherokee 318 V8 and have often noticed the dip stick accuracy seems to be sensitive to shut-down time and vehicle angle.
Last week it showed 1 Qt low so I added one. A couple of days ago I checked the oil level and it is showed ONE OVER and the oil pressure gauge shoots right over to max pressure after startup and doesn't waver from max until the engine shuts down. We don't know when the gauge began reading max only...
I've drained one liter- clean oil- no water... Changed the filter - the old one came out EMPTY... Still the gauge shoots and stays at max.
There are no rattles and the engine runs as always before- perfectly.
What do you think: sender unit or something serious like a partially spun bearing?