Oil ticked down on Wednesday, as robust greenback restrained investor’s appetite, traders decided to cash in some profits following the recent surge in benchmarks to multi-month highs during the previous session.

Brent crude slipped by 0.2% to $87.22 per barrel while WTI dropped by 0.4% to $83.16 per barrel.

Profit-taking may be the cause of today's downward shift, according to independent analyst Tina Teng of Auckland. She also noted that evidence of reduced supply and a stronger demand forecast have underpinned the current price gain.

The U.S. dollar index increased for a fifth straight session, weighing on Asian buyer confidence and recent statistics that suggested the U.S. economy was robust.

An increase in the value of the dollar drives up the cost of oil for foreign investors, which reduces demand.

Traders were waiting for clues about the Federal Reserve's interest rate trajectory for the remainder of the year in anticipation of the announcement later on Wednesday.