10psi on what weight oil? If it's 10w30 or 5wstuff, I'd go with 20w50 castrol dino oil.

I'd suspect a clogged/bad injector, except that chewed valve stem tip bothers me. I'd do a compression test and if:

The compression is good, remove/check/clean the injectors (first, crank it, then pull the dead cyl. plug and smell it for presence of gas odor, or wet gas. Do test on a cold engine and run no longer than 15-20 seconds - if you've got gas smell, SOME gas is getting squirted).

If the oil pressure comes up at idle with heavier oil, and you have at least 10psi of oil pressure per 1000rpms (20psi at 2000, 30psi at 3000), and at least 55ish psi at 5000rpms, the oil clearances in the block are pretty good for quite a while yet, and I'd just put a set of fresh heads on it, with waterpump, hoses, belts, tensioners. NOTE fully theaded depth on head bolts to get proper head clamping force. Search "head bolt" under username "FrankR".