Jeep Oil Sensor 2002 Grand

check the pressure sending unit. the sensor (on Fords) is usually near the oil filter. not sure on your 4.0L 318(5.2L).

I have the same problem with my 2002 grand am and its the oil sensor sending unit it has a straight stream coming out. It sits right above the starter and saturates the starter with oil. It looks you could be leaking oil in many different spots. It looks like an oxygen sensor and very easy to change. If the threads are frozen from heat spray it with wd40 and let it sit for a while before loosening the sensor. Some oil will come out, I suggest draining the oil and disconnecting the battery because the starter is so close to the sensor before doing this job. I hope this helps you.

The oil pressure sensor has failed. Check to see if the wire has not been knocked off when the oil filter was changed. I think the sensor is either by the oil filter or at the rear top of the engine where the trans bolts up. If the wire is good and connected have the sensor replaced.

The can sensor in most cases is located in the below mentioned position.The camshaft position sensor is located just above the oil filter on the right side (sitting in the vehicle) of the engine. But if in case you don't find the sensor there then,
In some model of jeep its located on the BELL housing. ON bell housing to locate the cam sensor:-- AS you stand in front of your JEEP .Head under the bonnet .Then exactly on the right side you will see a fuel rail .Follow the fuel rail and you will reach the bulk head. The can sensor is down there ON THE TOP OF THE BELL HOUSING.
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Check the Oil Pressure/Sending Sensor located right adjacent to the Oil Filter. Check the connections. Because of it's location, it is prone to have corrosion and oxidation affect the connection. Remove the Sensor. Visually inspect and clean the Sensor. Clean any corrosion on both connections sites and replug it back in and check operation. I don't replace these Sensors right away. If the same problem occurs, then I replace the Sensor and recheck the operation.
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TRANSMISSION SENSOR FOR A GRAND CHEORKEE 2002

The oil sending unit has gone bad and needs to be replaced. The sensor is under the exhaust manifold and above the oil filter on the V6. Replace the oil pressure sending unit, once they fail they may start to leak oil soon. Good luck and keep me posted. 

It's called an oil pressure sending unit. There are two versions one for vehicles with a light on dash, one for those with a gauge. It's not expensive and MUST be replaced. Not hard to do.

its on the rear of the engine next to the distributor

The most common problem is a bad oil pressure switch on the 99-02 grand cherokee with the 4.7l v8. The part has failed on 90% of all 99-02 grand cherokees I have worked on. The housing is junk,but since it has lasted longer then 36,000 miles the factory would not issue a recall. The oil pressure switch can be purchased at any outlet. but have found the duralast was decent. that being said Go to autozone and get part # PS471 (oil pressure switch for 1999-2002 N code 4.7L V8.) chances are if you encounter the same problem after replacement you will need to drop the oil pan and un clog the oil sump.

To replace the switch, under the hood look for the power steering pump on the driver side of the vehicle, to the right and under the p/s pump is the oil pressure switch, If it is wet, its bad for sure, remember to disconnect the battery before service,as not to harm the gauges.