The lockdowns seen in China from Shanghai to Shenzhen is the reason the crude price has come off from its premium.

Transportation companies, public transport, manufacturing are suspended in various cities in China and that is leading to the fall.

Also, Europe coming out with no sanctions on Russian crude has been the reason the premium come off; the US inventories have continued to rise for the last couple of weeks.

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It's not just the crude oil price but commodities like gasoline, heating oil also fell between 5 percent and 6 percent in the overnight market.

Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more

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