Heavy dips slightly, synthetic steady

The discount on benchmark heavy Canadian crude versus West Texas Intermediate inched wider on Friday:

* Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, last traded at $19.55 a barrel below WTI, according to NE2 Group, widening 5 cents from the previous day's settlement.

* Benchmark Canadian heavy crude has held steady at a discount between $19 and $20 a barrel under WTI so far this month, weighed down by the release of predominantly sour barrels from the U.S. Strategic Petroleum Reserve. Meanwhile, synthetic barrels have been supported in recent months by maintenance on oil sands upgraders that reduced supply.

* Light synthetic crude from the oil sands for September delivery was steady at $6.75 a barrel over WTI.

* Global oil prices fell around 2%, on expectations that supply disruptions in the U.S. Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.