The Canadian heavy oil discountnarrowed slightly on Monday against the West Texas Intermediate(WTI) benchmark, but remained in its recent range as takeawaycapacity remains tight, creating a supply glut in theoil-producing province of Alberta.
* Western Canada Select (WCS) heavy blend crude for Aprildelivery in Hardisty, Alberta, settled at $25.25 a barrel belowthe WTI benchmark crude price , according to ShorcanEnergy brokers, compared with Friday's settle of $25.55. * The discount reflects expanding Alberta oil production andtight capacity on pipelines and railways. * The glut of barrels stranded in Western Canada will remainuntil a deal can be brokered between the shippers and the railcompanies to unlock Canadian heavy crudes and ship them to theU.S. Gulf, said Michael Tran, energy strategist at RBC CapitalMarkets. * An expected return of TransCanada Corp's Keystonepipeline to full pressure, following a November leak, would helpreduce the discount, traders have said. * Light synthetic crude from the oil sands for Aprildelivery last traded at $3 over WTI, in line with Thursday'ssettle of $3. (Reporting by Julie Gordon in Vancouver; Editing by PeterCooney)