I'll first note: When I find bushing bad and rack seals leaking. I'd advise R&P be replaced. The new R&P comes new bushings and inner TRE. In most cases, I'd also install new OEM outer TRE.
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In your pic. Bushing is a bit hard to see, since so dirty. But does look shot. By turning steering wheel left then right about 30 degrees, while videoing bushing. I do this with both or one front tire on the ground. You'll like see rack lift and is bushing badly split.
When rack housing mounting bushing shot. We'll see steering wheel slow to come back to center after a turn. But does come back, if wheel alignment correct.
The oil on bushing/rack is coming from somewhere. Likely engine oil.
Just the bushing can be replaced. You'll find write-ups in mud on how (note: 03-07 are different than 98-02 R&P). If oil leak not stopped. Then you'll want poly bushings. Which oil soaking, won't result damaging them like rubber.
It does look like, you also have a power steering fluid leak at left rack to rack housing seal (boot). Although it is possible, engine oil leak has made to boot.
If oil was inside boot, and both boot clamps were in place, rack is leaking. If PS fluid is leaking. It means you are loosing power steering fluid (ATF). Yet you state the reservoir is full. Then, resevoir is likely so dirty in only looks full. Put a flashlight behind reservoir to backlight fluid in it so you can see. Note the 3 level indicator lines: Cold low, cold high/hot low, hot high.
When we have a leak into rack boot. It very often washes out inner TRE balls grease. Thus damaging that inner TRE.
Keep in mind, wheel bearings, TRE, ball joint, AHC pressures & adjustment. Must all be within spec. Or replacing bushing may not total solve your issue.
Power steering fluid and reservoir is often overlooked, since mile one. Bad/old fluid will cause issues.
Cleaning power steering reservoir and flushing it's fluid. Keeps Vane pump and rack & pinion in top condition.
These step will help you get, a better idea on how to.
- Power wash reservoir & hoses using a degreaser, before starting service. Makes for cleaner job. Repeat, once all done with servicing/flushing.
- Release hose clamps from hoses of reservoir, sliding them down the hoses a few inches. Do not remove hose yet, just insure they turn freely on reservoir nipples.
- Pull reservoir out of holder. You'll need to release/bend clip outward, on outside of holding bracket...