Hurricane Gustav pounds US coast

Hurricane Gustav sent strong winds and lashing rains into New Orleans early yesterday, but the storm lost some of its power and was expected to move ashore to the west, sparing the city its full force.

Gustav weakened to a Category 2 hurricane shortly before making landfall, although it was already pounding Louisiana's coastal areas with torrential rain and hurricane force winds.

US crude oil futures slipped to below $114 a barrel yesterday morning as fears of major damage to oil facilities in the Gulf of Mexico eased.