The US Strategic Petroleum Reserve will now buy oil using standard industry contracts

The US Energy Department changed its rules for buying oil for the Strategic Petroleum Reserve. It will now use contracts that tie the price to a market index, which is how the oil industry usually buys and sells crude. This means the government's oil purchases will follow common market practices, making it easier to acquire petroleum.

For years, the government bought oil for its emergency reserve using custom contracts. This often meant slower deals and less competitive pricing, because the government's process did not match how the industry operates. Now, the Energy Department will use the same kind of index-priced contracts that private companies use. This should streamline purchases and help the reserve refill more efficiently when prices are favorable.