Heavy Oil Discount Narrows for Fifth Session in a Row

* 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.