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Ground the wire at the temp sender and turn the key to the on position. If gauge and wiring are working correctly the needle should drop down to the lowest point which would indicate a bad sender.
You did not say if the needle is pegged all the time or only pegs when turning the key on but Sometimes when the needle pegs it can stick and after grounding the wire at the temp sender give the gauge face a light thump to see if it drops back down.
I would be leaning to some other issue than the the sender such as wiring continuity and can’t honestly remember ever having a oil temp sender with an open circuit.
Richard
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