Discount on Western Canada Select Widens

WCS for July delivery in Hardisty, Alberta, settled at $11.40 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared to $11.15 a barrel on Friday.

* WCS is ending its monthly trading cycle with the differential nearly $4 tighter than it was in mid May. It has been on a narrowing trend this month, tightening by approximately $4 since mid-May.

* Western Canadian crude inventories are low, contributing to crude export supply tightness out of the region.

* Global oil prices settled down $4 a barrel to a three-month low on Monday after President Donald Trump said the United States and Iran have signed a memorandum of understanding aiming to end the Iran war and reopen the Strait of Hormuz.

(Reporting by Amanda Stephenson in Calgary; Editing by Joyjeet Das)