The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) narrowed on Thursday, for the fifth straight day:
* WCS for September delivery in Hardisty, Alberta, settled at $12.25 a barrel below WTI, according to brokerage CalRock, having settled at $12.40 a barrel under the U.S. benchmark on Wednesday, for the fifth straight trading session
* Canadian heavy crude differentials have gained support this month from some U.S. Midwest refineries restarted operations after unplanned shut-downs in July
* Markets, however, worry that any Canadian rail stoppage would cut prices of Canadian crude due to lack of takeaway capacity
* Global oil prices gained more than $1 a barrel on Thursday after U.S. economic data allayed fears of recession in the world’s biggest economy, although the rally was limited by concerns of slower global demand.
(Reporting by Arathy Somasekhar in Houston; Editing by Mohammed Safi Shamsi)