May 6 (Reuters) - The discount of Western Canada Select (WCS) heavy crude to the North

American benchmark West Texas Intermediate futures (WTI) continued its tightening trend

on Tuesday, settling below $9 for the first time in approximately five years.

WCS for June delivery in Hardisty, Alberta, settled at $8.95 a barrel under the U.S.

benchmark WTI, according to brokerage CalRock, after having settled at $9.15 under the U.S.

benchmark on Monday.

The last time Canadian heavy crude traded at such a tight discount to the U.S. benchmark was

in 2020, amidst global pandemic-related oil price volatility, said Rory Johnston, energy analyst

and founder of the Commodity Context newsletter.

* Canadian heavy crude has been trading at a tight discount in recent months in part due to

the opening of the Trans Mountain pipeline expansion one year ago, which boosted the country's

oil export capacity. WCS also typically sees seasonal strength this time of year as the return

of summer driving season ramps up refinery demand, Johnston said.

* Marathon, the top U.S. refiner by volume, said Tuesday it plans to operate its

refineries at 94% of their combined capacity in the second quarter, up from 89% capacity in the

first quarter.

* Globally, oil prices climbed about 3% on Tuesday on signs of higher demand in Europe and

China, lower production in the U.S., tensions in the Middle East and as buyers emerged the day

after prices fell to a four-year low.