Oil prices traded lower as market participants monitored closely the direction of the U.S. dollar. The greenback traded higher against the most major currencies on speculation the Fed to start to hike its interest rate this year. The U.S. currency declined as news reported that Greece and its creditors were starting to draft an agreement. Greek Prime Minister Alexis Tsipras said on Wednesday that Athens was "close" to a deal with its creditors.

Market participants are awaiting the release of U.S. crude oil inventories by the American Petroleum Institute (API) later in the day and by the U.S. Energy Information Administration (EIA) tomorrow.

The EIA's figures could show that U.S. crude oil inventories declined by 2.0 million barrels in the week ended May 22.

WTI crude oil for July delivery decreased to $57.43 a barrel on the New York Mercantile Exchange.

Brent crude oil for July fell to $63.19 a barrel on ICE Futures Europe.