Discount on Western Canada Select Heavy Crude Narrows

* WCS for January delivery in Hardisty, Alberta, settled at $12.40 a barrel under the WTI benchmark, according to brokerage CalRock, having settled at a discount of $12.60 a barrel under the U.S. benchmark the previous day.

* Global oil prices fell by more than 1% and cemented weekly losses as analysts projected a supply surplus next year on weak demand despite an OPEC+ decision to delay output hikes and extend deep production cuts to the end of 2026.

* The outright price of WCS dropped below $55 a barrel.

(Reporting by Nia Williams in British Columbia; Editing by Sandra Maler)