By Nia Williams
CALGARY, Alberta, July 2 (Reuters) - Canadian cash crudedifferentials narrowed on Wednesday, the first day of the newmonthly trade cycle, and looked likely to remain supportedwhile strong refinery utilization rates in the United States andCanada continue.
Western Canada Select heavy blend for August delivery lasttraded at $20.00 per barrel below the West Texas Intermediatebenchmark, according to Shorcan Energy brokers.
That compares with a settlement price on Monday of $21.50per barrel below the benchmark. Tuesday was a statutory holidayin Canada and markets were closed.
Martin King, analyst at FirstEnergy Capital in Calgary, saidhe expected prices to remain stable, given healthy demand.
"The differentials seem to have been drifting around in a$1-$2 range. As long as we keep seeing decent inventory draws inthe United States and refinery utilization rates keep up atthese good levels, there's no reason for that to change," hesaid.
Light synthetic crude from the oil sands for August deliveryalso strengthened slightly to $1.50 per barrel below WTI,compared with $1.75 per barrel below the benchmark.
Royal Dutch Shell Plc said its 75,000barrel-per-day Corunna refinery in Sarnia, Ontario was operatingnormally after an incident on Wednesday morning that left twoworkers injured. (Editing by Ken Wills)