Dec 2 (Reuters) - The discount on Western Canada Select

(WCS) heavy crude versus the North American benchmark West Texas

Intermediate (WTI) narrowed slightly on Monday, as the new

monthly trade cycle got underway:

* WCS for January delivery in Hardisty, Alberta, settled at

$12.00 a barrel under the WTI benchmark, according to brokerage

CalRock, having settled at a discount of $12.30 a barrel under

the U.S. benchmark on Friday.

* Monday was the start of the Canadian crude market's trade

cycle, which runs from the first of each month until the day

before pipeline nominations are due, and in which the bulk of

trading activity takes place.

* Global oil prices were little changed on the day, as hopes

of stronger demand stemming from higher factory activity in

China were largely offset by concerns that the U.S. Federal

Reserve will not cut interest rates again at its December

meeting.

* The outright price of WCS was just above $56 a barrel.