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First I was going to say the valves were damaged from the heat or lack of oil, but that would not make sense if the steering wheel is turned. The power steering is about the only thing affected by the steering wheel. I would take a piece of heater hose and use it as a stethoscope to listen around the pulleys for the noise with someone turning the wheel.
HI.WELL I DON'T KNOW WHERE TO START. FRIST IF IT WAS THE FLYWHEEL IT WOULD DO IT WHEN THERE IS NO STRAIN ON THE MOTOR WHEN DRIVING. THE SAME IF YOU HAD A BAD BEARING. IF I COULD JUST HEAR IT RUNNING, IT COULD BE A BAD OIL PUMP THAT COULD CAUSE IT TO RADDLE UNTIL YOUGET THE OIL BUILT UP ENOUGH TO STOP IT. HOPE THIS HELPS. JIMBO
If you don't hear any ticking or knocking while the pressure gauge drops, the problem is probably a failing "oil pressure sensor". If you do hear a ticking or knocking, the problem is probably a failing "oil pump".