Discount on Western Canada Select Heavy Crude Widens

* WCS for January delivery in Hardisty, Alberta, settled at $12.30 a barrel under the WTI benchmark, according to brokerage CalRock, having settled at a discount of $12.00 a barrel under the U.S. benchmark on Monday.

* Canadian heavy crude prices are steady at relatively strong levels as oil sands production holds near record highs and refinery activity picks up over the winter, said RBN Energy analyst Martin King.

* Global oil prices rose more than 2% as Israel threatened to attack the Lebanese state if its truce with Hezbollah collapses and as investors positioned for OPEC+ to announce an extension of supply cuts this week.

* The outright price of WCS was over $57 a barrel.

(Reporting by Nia Williams in British Columbia; Editing by Sumana Nandy)