Oil prices eased further below $69 on Thursday as the United States pledged to loan crude from its strategic reserves in the wake of Hurricane Katrina, but gasoline rallied as the loss of refinery output squeezed tight supplies.The United States also temporarily eased environmental fuel regulations in an effort to head off shortages, but dealers were unconvinced the measures would rein in record fuel pries. U.S. crude (CLc1) traded 36 cents down at $68.58 a barrel by 0200 GMT, after ending 87 cents lower on Wednesday. Gasoline futures (HUc1) on the New York Mercantile Exchange (NYMEX) jumped 6.21 cents or 2.8 percent to $2.3174 a gallon in the new front-month October contract, after September gasoline hit record highs and expired a hefty 14 cents up on Wednesday. "Crazy gas prices are certainly reflecting a perception of tighter supply in that product," said Bob Frye, a trader at Access Futures and Options Trading. "As soon as we start hearing about isolated pockets where gas is unavailable, the emotional response is likely to drive things higher," he added. As much as 20 to 40 million barrels of refinery throughput could be lost as the storm damage is repaired, including 14 million to 28 million barrels of gasoline, Barclays Capital estimates. That would further drain motor fuel stockpiles that already stand 7 percent below last year's levels. Savage Katrina, which may have killed hundreds as it hit the U.S. Gulf Coast on Monday, has shut down nine refineries in the region, straining an industry that has been working nearly flat out this year to satisfy growing demand for consumer fuels. It also shut 91 percent of the normal 1.5 million barrels per day (bpd) of Gulf of Mexico crude production and 83 percent of the normal 10 billion cubic feet of natural gas output, according to the U.S. Minerals