Image credit: Global Risk Management

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Oil extended losses on Wednesday to fall below $73 a barrel, pressured by an industry report that U.S. stockpiles of crude rose unexpectedly, and higher OPEC production, adding to indications of more plentiful supply.

Kuwait has confirmed an increase in output of 100,000 bpd from June's average. Yemen's Houthi group said it was ready to halt attacks in the Red Sea to support peace efforts. Saudi Arabia had suspended oil shipments through the strait last week after attacks on tankers.

Concern over slowing economic growth because of a further trade dispute between the United States and China is also putting downward pressure on the market as the U.S. is now considering more than doubling planned tariffs on $200 billion in Chinese imports. The U.S. had threatened an additional $200 billion with levies of 10 percent - a level the administration may raise to 25 percent in a Federal Register notice in coming days.

This possibility of higher U.S. tariffs overwhelmed optimism about Beijing's pledge to support economic growth. The yuan fell against a trade-weighted basket of currencies to a level that's near the lowest on record.