The Canadian heavy oil differential narrowed against the West Texas Intermediate (WTI) benchmark on Thursday, improving slightly as global oil prices fell:
* Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, settled on Thursday at $42.50 a barrel below WTI crude futures after settling Wednesday at $43.50, according to Shorcan Energy brokers. * Light synthetic crude from the oil sands for December delivery settled at $30.75 under WTI, compared with Wednesday's settle of $31.50. * The discount on Western Canadian crudes hit record highs last month as rising production outstripped pipeline capacity, while new crude by rail capacity has not yet reached volumes needed to clear the glut. * The differential has compressed as the WTI price has fallen, but realized prices for Canadian barrels remain largely unchanged, analysts said. * A number of Canadian producers have announced production cuts in response to the steep discount and that, combined with the anticipated return of refinery capacity that has been offline for maintenance, should have a notable impact on differentials, analysts at Eight Capital said in a note. * Global oil prices fell nearly 2 percent on Thursday as investors focused on swelling global crude supply, which is increasing more quickly than many had expected. (Reporting by Julie Gordon in Vancouver Editing by Tom Brown)