Heavy crude discount narrows as new trading window opens

The Canadian heavy oil differential narrowed against the West Texas Intermediate (WTI) benchmark on Monday, the first day of a new monthly trading window.

* Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, settled at $39.50 a barrel below the WTI benchmark crude futures , compared with Friday's settle of $43.50, according to Shorcan Energy brokers.

* Friday's settle marked a new record spread for the differential.

* Rising output from Canada's oil sands has run up against full pipelines, swelling volumes in storage and putting pressure on prices, analysts say. While crude by rail volumes are up, they have not yet had a material impact on the build up.

* Global oil futures jumped more than $2 a barrel on Monday, rising to levels not seen since November 2014, as U.S. sanctions on Iran loom and a North American trade deal fosters growth.

* Light synthetic crude from the oil sands for November delivery settled at $19.00 under WTI, compared with Friday's settle of $18.00 under.

(Reporting by Julie Gordon in Vancouver; Editing by Sandra Maler)