The alliance is likely to challenge OPEC’s capability of controlling the market and prove to be a game changer for India. Other than the US, India, and China are the largest sources of demand growth in 2018, according to OPEC’s monthly report.

New Delhi (Sputnik) – Brimming with confidence after the recent informal summit between Prime Minister Modi and President Xi Jinping, India and China are discussing ways to form an oil buyers club with China, Japan and South Korea.

"With oil producers' cartel OPEC playing havoc with prices, India discussed with China the possibility of forming an ‘oil buyers club' that can negotiate better terms with sellers as well as getting more US crude oil to cut dominance of the oil block," India's Petroleum Ministry tweeted.

With oil producers' cartel OPEC playing havoc with prices,India discussed with China the possibility of forming an 'oil buyers club' that can negotiate better terms with sellers as well as getting more US crude oil to cut dominance of the oil block.https://t.co/5Nch6hzDDT — Petroleum Ministry (@PetroleumMin) June 14, 2018

After US & China, India consumes maximum primary energy. But, India is on the list of least per capita energy consuming countries. What does it mean? According to energy analysts, out of Rs. 100 worth energy sale in 2040, Rs. 33 will be sold in India: Dharmendra Pradhan in #UAE pic.twitter.com/753gaBn3q2 — ANI (@ANI) May 12, 2018

Indian Oil Corporation (IOC) chairman Sanjiv Singh met Wang Yilin, chairman of China National Petroleum Corporation (CNPC) in Beijing on Monday and held discussions to facilitate more US crude oil imports to Asia to cut the dominance of OPEC. Oil prices have shot up in India recently due to production cuts by OPEC. The BJP-led government in India is concerned this will jeopardize its chances in next year's general election with the opposition blaming the government for rising fuel prices.

​The idea of forming an oil bloc to counter OPEC's hegemony was mooted by Indian Petroleum Minister Dharmendra Pradhan during the International Energy Forum meeting in April in New Delhi.

"The timing is right. There is a boom in US oil and gas production which will give greater leverage against OPEC which will definitely cut their monopoly," Sanjay Puri, president of Washington based US-India Political Action Committee (USINPAC) told Sputnik.

At present, India and China together account for almost 17 percent of world oil consumption. Projections are that both the countries are likely to account for more than 50% of future oil demand growth.