TransCanada’s Keystone crude line to cut some spot rates to Illinois, Cushing

TransCanada Corp's Keystone pipeline filed with U.S. regulators to cut some temporary discounted spot rates to haul crude from Canada to Wood River and Patoka, Illinois and Cushing Oklahoma, effective Feb. 1:

* Temporary discounted spot rates for oil moving from the international boundary at or near Haskett, Manitoba, to Wood River, Patoka and Cushing would range from $21.242 to $25.032/cubic meter for light crude and $22.642 to $26.331/cubic meter for heavy crude – FERC filing.

* Current rates range from $42.539 to $47.770/cubic meter for light crude and $46.119 to $51.028/cubic meter for heavy crude.

* The Canadian heavy oil differential moved against the West Texas Intermediate (WTI) benchmark on Monday to its narrowest level in more than a year, as traders tried to figure out the impact of the Alberta government's mandated production cuts.

* It was not immediately clear whether the rally in Western Canada Select (WCS) crude differentials was driven by the reduction in some rates on the Keystone pipeline, traders said.

(Reporting by Devika Krishna Kumar in New York)