Hope that Rita damage limited

NEW YORK - The US oil industry snapped into action yesterday to assess damage to its installations after Hurricane Rita hit the Gulf Coast near Sabine Pass, Texas.

The US Department of Energy said it was "cautiously optimistic" that refineries in Houston suffered minimal damage. The storm, which ploughed through the offshore oil and gas producing region of the Gulf of Mexico, shut all Gulf Coast crude oil production and 30 per cent of US oil refinery production.

Oil prices eased towards US$66 ($96.43) a barrel.

- REUTERS