The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) narrowed on Friday, the first day of the new monthly trading window:
* WCS for January delivery in Hardisty, Alberta, settled at $22.50 a barrel under WTI, according to CalRock, strengthening from $23.50 a barrel under WTI on Thursday.
* Canadian heavy crude differentials have narrowed since last month but remain under pressure on concerns the Trans Mountain pipeline expansion project could be delayed beyond the first quarter of 2024.
* Regulators are set to decide in coming days whether to approve a variance request on a section of the pipeline in British Columbia. Trans Mountain has said denying the variance could add 55-60 days of construction time.
* Benchmark oil prices slumped more than 2% on Friday following a volatile trading week, as the market kept a wary eye on the latest round of OPEC+ production cuts and sluggish global manufacturing activity.
* The outright price of WCS was around $51.50 a barrel.
(Reporting by Nia Williams in British Columbia; Editing by Shailesh Kuber)