WASHINGTON, Aug 31: US President George W. Bush flew back to Washington on Wednesday to coordinate his government’s response to the devastation caused by the hurricane Katrina along America’s Gulf Coast.

The US government also decided on Wednesday to release oil from federal petroleum reserves to stabilize oil prices that surged to above $70 a barrel in European markets earlier on Wednesday. The decision had an immediate affect on the oil market and the price slipped quickly to $69.56 soon after the announcement.

Mr Bush is expected to visit the affected areas later this week.

Hundreds are feared to have died across the region but officials said rescue workers were not even trying to count the dead and instead were pushing the bodies aside for the time being as they try to find the living.

Tens of thousands of people are expected to need temporary homes for uncertain durations. The authorities were looking at renting apartments, putting people up in trailers and establishing floating dormitories.

Mr Bush and his top aides held a video conference on Wednesday before he flew back to Washington, cutting short his working vacation in Texas by two days.

Vice President Dick Cheney participated in the video conference from Wyoming, White House chief of staff Andy Card from Maine and top officials were in Washington.

President Bush also met on Wednesday a task force he established to coordinate the efforts of 14 federal agencies that will be involved in responding to the disaster.

“This is a major catastrophe,” White House press secretary Scott McClellan told reporters. He said the government was declaring the hurricane to be an “incident of national significance,” a designation that triggers a national emergency plan.