My 96 jetta did the same thing it is the oil pressure sensor,wich is located under the hood it looks like a black sparkplug wire and they go bad all the time.its a 7 dollar piece it looks like a spark plug with a little prong on the top that is located in the front of your engine as soon as you open the hood it should be right there in the front you cant miss it.
Tip: The oil light flashing indicates that the pressureof the oil is low, the light does not necessarily indicates when the oil level is low. The problem could be a bad oil pump or a leak in the filter.
no oil or low oil pressure
That mean you have to change your motor oil and your filter, soon when he is flashing and very soon as possible when he stay light!
A flashing oil light can be warning you of an oil pressure problem. The quantity of oil can be fine but the oil pressure may be low due to other problems.
Why does oil light come blink on 2003 Jetta 2.0 after oil change
It means, that you have to refill oil and cooling water.
bring it in for servicing
This light warns that transmission oil temperature on an automatic transmission is too high. If the light is flashing it indicates that the transmission control system is not working properly.
A yellow flashing engine light is an indication that the engine should be checked. The yellow flashing light can because by low water level or low motor oil.
It means that the oil pump was unable to pump oil for any period of time. It is usually due to a low oil level, so check your oil dipstick.
The red flashing ranch is an indication that the oil pressure is low. The oil pressure is at zero pounds per square inch until the engine begins to run. Within a few seconds the oil pressure is at a normal level.
Your low on oil or Oil is covering the sensor on the tank.