June 9 (Reuters) - The discount on Western Canada Select (WCS) to the North American

benchmark West Texas Intermediate (WTI) futures narrowed slightly on Monday.

WCS for July delivery in Hardisty, Alberta, settled at $8.80 a barrel under the U.S.

benchmark WTI, according to brokerage CalRock, after having settled at $8.85 under the U.S.

benchmark on Friday.

* The WCS discount is tight in part due to the wildfire situation in Western Canada, which

continues to be a risk to Canadian oil supply, said Enverus analyst Michael Berger.

* Last week, wildfires burning in Canada's oil-producing province of Alberta prompted

several oil

sands operations to evacuate workers as a precaution. About 344,000 barrels per day of

production, or about 7% of Canada's average daily crude production, was disrupted as a result.

* Canada's largest crude producer, Canadian Natural Resources ( CNQ ), has since restarted

operations at its Jackfish 1 site, but Cenovus Energy ( CVE ) has not yet confirmed when it

will restart production at its Christina Lake site.

* Alberta's crude storage levels are hovering around a five-year low, Berger said, in large

part

due to the drawdown in inventories that has taken place since the opening of the Trans Mountain

pipeline expanded export access for Canadian oil producers.

* Seasonal refinery maintenance as well as U.S. sanctions on Venezuela and other countries

is also

boosting demand for non-sanctioned heavy crude producers like Canada, Berger said.

* Global oil prices hit multi-week highs on Monday, buoyed by a weaker U.S. dollar, while

investors awaited news from U.S.-China trade talks in London in hopes a deal could boost global

economic outlook and subsequently fuel demand.