The steering on my folks 90 740 sedan makes a rubbing sound like a dry bearing when the steering is turned in either direction. The u-joints in the engine bay seem fine - at least there is no movement in them. I noticed what looked like some sort of bearing at the bottom of the steering column where it goes through to the engine bay. Is this a bearing? If so should I try squirting some oil on it?
The noise sounds as though it's coming from down low so I don't believe it's right behind the steering wheel. Any other possibilites?

Thanks
Brad