On Wednesday, oil prices slumped for the second session in a row due to concerns that demand would be negatively impacted by more hawkish U.S. interest rate hikes. At the same time, the market is anticipating for additional information on inventories.

Brent crude futures dipped by 0.3% to $83.07 per barrel meanwhile West Texas Intermediate crude futures dropped by or 0.4%, to $77.24 per barrel.

The two main gauges fell by more than 3% on Tuesday following Powell’s testimonial as he stated that the central bank would probably need to hike interest rates more than initially anticipated in response to recent positive figures.

Later on Wednesday, after the API data revealed a fall in crude stocks for the first time following a 10-week rise, traders were also anticipating crude inventory data from the U.S. Energy Information Administration.

Oil prices were also restrained by a stronger currency. In response to Powell's remarks, the U.S. dollar, which normally trades in opposition to the price of oil, surged to a three-month high versus a basket of currencies.