I had that problem too, until I changed the oil switch. Now it glows like the midday sun, so there is no doubt about when it is lit.
Joy to the world!
Having been pointed towards the right diagnosis, I have now resolved the problem.
As suggested above the blue/red wire was permanently grounded, behind the final drive sprocket, just before it enters the starter motor housing.
In retrospect my thinking should have been:
Light is on:
Pressure is good, given the pressure gauge reading (60psi)
Check the switch. Even though the switch appears to be OK, there is no change even with a new switch so it is unlikely that the switch is the problem.
Only thing remaining is the wiring .....
Probably would have saved me several frustrating hours of nonsense.
Thanks for your thoughts.