June 3 (Reuters) - The discount on Western Canada Select

(WCS) to the North American benchmark West Texas Intermediate

futures (WTI) widened on Tuesday but remained in

historically tight territory as wildfires continued to disrupt

Canadian oil production.

WCS for July delivery in Hardisty, Alberta, settled at $9 a

barrel under the U.S. benchmark WTI, according to brokerage

CalRock, after having settled at $8.80 under the U.S. benchmark

on Monday.

Wildfires burning in Canada's oil-producing province of

Alberta have reduced the country's daily crude production by

about 7%, according to Reuters calculations. No significant oil

infrastructure has been damaged, but companies have shut in

about 344,000 barrels per day of production and evacuated

workers from some sites as a precaution.

* The fires come at a time when Canadian heavy crude has

already

been trading at a historically tight discount in part due to the

opening of the Trans Mountain pipeline expansion one year ago,

which boosted the country's oil export capacity.

* Canadian crude has also benefited from U.S. sanctions on

Venezuela and other countries, which is boosting demand for

non-sanctioned heavy crude producers.

* Globally, oil prices climbed about 2% on Tuesday to a

two-week

high as persistent geopolitical tensions between Russia and

Ukraine and the U.S. and Iran looked set to keep sanctions on

both OPEC+ members Russia and Iran in place for longer.