CANADA-CRUDE-Discount on Western Canada Select heavy crude widens; wildfires reduce Canadian output

June 3 (Reuters) - The discount on Western Canada Select (WCS) to the North American benchmark West Texas Intermediate futures (WTI) CLc1 widened on Tuesday but remained in historically tight territory as wildfires continued to disrupt Canadian oil production.

WCS for July delivery in Hardisty, Alberta, settled at $9 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, after having settled at $8.80 under the U.S. benchmark on Monday.

Wildfires burning in Canada's oil-producing province of Alberta have reduced the country's daily crude production by about 7%, according to Reuters calculations. No significant oil infrastructure has been damaged, but companies have shut in about 344,000 barrels per day of production and evacuated workers from some sites as a precaution.

• The fires come at a time when Canadian heavy crude has already been trading at a historically tight discount in part due to the opening of the Trans Mountain pipeline expansion one year ago, which boosted the country's oil export capacity.

• Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which is boosting demand for non-sanctioned heavy crude producers.

• Globally, oil prices climbed about 2% on Tuesday to a two-week high as persistent geopolitical tensions between Russia and Ukraine and the U.S. and Iran looked set to keep sanctions on both OPEC+ members Russia and Iran in place for longer.