Noam Chomsky

Guardian Unlimited | Guardian daily comment | Latin America and Asia are at last breaking free of Washington's grip: "The US-dominated world order is being challenged by a new spirit of independence in the global south "

India may choose to be a US client, or it may prefer to join the more independent Asian bloc that is taking shape, with ever more ties to Middle East oil producers. The key is India-China cooperation. In January, an agreement signed in Beijing "cleared the way for India and China to collaborate not only in technology but also in hydrocarbon exploration and production, a partnership that could eventually alter fundamental equations in the world's oil and natural gas sector", Varadarjan points out.

An additional step, already being contemplated, is an Asian oil market trading in euros. The impact on the international financial system and the balance of global power could be significant.