Oil experienced further dips from the earlier session on Wednesday, as projections that the interest rate trims will not be as soon as expected, exceeded continued worries about attacks on ships in the Red Sea.

Brent crude dipped 0.57%, to $81.87 per barrel, while US WTI slumped by 0.62% at $76.56 per barrel.

On Tuesday, the Brent and WTI contracts dropped 1.5% and 1.4%, respectively, from their close to three-week highs.

Monday saw the highest price for front-month April Brent futures since October 31 at $3.64 a barrel; however, this premium above September contracts, known as backwardation and an indication of a tightly-supplied market, has since eased to about $3.37.

The estimate for oil demand has been negatively impacted by worries that the Federal Reserve may not reduce rates as quickly as anticipated. The latest data on U.S. inflation has dampened expectations for an early beginning of the Fed's easing cycle; economists surveyed by Reuters now predict a June decrease.