UPDATE 1-Oil producer Cenovus reports third-quarter loss as prices decline

(Adds details, estimates)

Oct 31 (Reuters) - Canadian oil producer Cenovus Energy on Wednesday reported a loss for the third quarter, hurt by a fall in Canadian crude prices amid rising oil supplies.

The discount on Canadian heavy oil has spread to its widest point on record, as rising production from Alberta's oil sands has run up against full pipelines, leading to swelling volumes in storage. https://reut.rs/2AC096c

Cenovus, like other oil and gas producers, has been negotiating with railroads to ship oil as it increases production and pipelines run in full capacity.

Last month, Cenovus signed three-year deals with Canada's two major railways to transport roughly 100,000 barrels per day of crude from Northern Alberta to the U.S. Gulf Coast.

The Calgary, Alberta-based company, which made an unpopular deal with ConocoPhillips in March last year and took a huge debt, has been taking steps to turn around its business through layoffs and assets sales.

Its total production rose 4 percent to 495,592 barrels of oil equivalent per day in the third quarter ended Sept. 30.

Cenovus said net loss was C$242 million ($184 million), compared with a profit of C$275 million a year earlier.

Excluding one-time items, Cenovus reported a loss of 3 Canadian cents per share.

Analysts on average had expected earnings of 21 Canadian cents per share, according to Refinitiv data. ($1 = C$1.31) (Reporting by Laharee Chatterjee in Bengaluru; Editing by Maju Samuel)