Discount on Western Canada Select Heavy Crude Narrows

* WCS for January delivery in Hardisty, Alberta, settled at $12.20 a barrel under the WTI benchmark, according to brokerage CalRock, having settled at $12.55 a barrel under the U.S. benchmark on Thursday.

* Global oil prices climbed to settle at a three-week high, on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the U.S. could boost fuel demand.