Wednesday saw a decline in oil prices from the highest level in three months as investors exercised caution ahead of the Federal Reserve's anticipated rate rise during the day and industry data revealed a build-up in U.S. crude stocks.

Brent crude futures dipped 0.45% to $83.26 per barrel meanwhile US WTI crude slid by 0.51% at $79.22 per barrel.

In the week ending July 21, based on market sources citing American Petroleum Institute data on Tuesday, U.S. crude stockpiles increased by roughly 1.32 million barrels. A 2.3 million barrel drawdown had been predicted by analysts surveyed by Reuters.

The majority of market investors anticipate that the Fed will announce a 25 basis-point rate increase when its policy meeting is over, which began on Tuesday. However, money market traders are divided on the likelihood of another increase later in the year given the easing of pricing pressures.

Since last week, when the greenback hit a 15-month low, it has gradually risen, making it more expensive for consumers to purchase commodities like oil.