Discount on Western Canada Select Narrows

* “The bidding war for Canadian crude remains very strong and the result has been tighter than typical differentials for this time of year,” said RBN Energy analyst Martin King.

* International buying of Canadian crude off the Pacific coast via the Trans Mountain pipeline remains strong, especially by China, King said. Buying of Canadian barrels for re-export out of the Gulf Coast has also been stronger than usual in reaction to additional sanctions on Russia, he added.

* Oil prices settled lower on Tuesday as weaker manufacturing numbers and a stronger dollar weighed on demand, while the OPEC+ decision to pause output hikes in the first quarter of next year could signal the group’s concern about a potential supply glut.

(Reporting by Amanda Stephenson in Calgary; Editing by Shilpi Majumdar)