Increase idle speed? 650-750 RPM
Twenty PSIG at hot idle is normal for Gen I SBC.

 

Here is what a local guy, that built IROC motors told me one day, he said 10psi per 1000 RPM is good enough.
Now I'm not sure I agree with that, because I like to see mine about 30 psi at an idle, but that's what he told me.
How long ago was this motor rebuilt or has it been? The reason I ask this, I bought a truck, had low oil issues, I pulled the intake off and the inside of the motor was neglected. I drained the oil, ran oil mixed with Type F tranny fluid through it and flushed it out and filled with new oil. The Type F will act like a cleaner. You never know if the pickup is clogged or there is a lot of sludge inside that needs to be cleaned out.

 

There is a huge difference between good and "good enough". Try both lines on the wife when she asks how she looks and see where that gets you. lol
As Everett mentioned, what rpm is your idle at, might be set a tad too low.

 

So, I've replaced the oil and senor. The vehicle appears to be driving excellent, meaning, it is not sluggish and has plenty of power...but the "low oil light" keeps flickering. Is it engine problems?

Jerry

 

random thought - where is your "oil" dummy light? if it's on the speedo and you have the console cluster, the light itself is wrong. that is actually the low fuel indicator. when i switched mine to that setup, i was wondering the same thing until i realized that i needed to change that piece over to "fuel" - which is annoying because mine kicks on/flickers at 3/4 tank or lower.

 

a link showing the lens:

Camaro Speedometer Fuel/brake Lens 1967-1968 - 1967, 1968, 1969 Camaro Parts - NOS, Rare, Reproduction Camaro Parts for your Restoration