* March synthetic trades at $2.90/bbl above WTI
* March WCS trades at $13.30/bbl below WTI
CALGARY, Alberta, Feb 10 (Reuters) - Canadian synthetic
crude extended gains on Wednesday, hitting its highest premium
to U.S. crude since last June, as supply cuts and upcoming
maintenance in the oil sands pushed prices higher.
Light synthetic crude from the oil sands for March delivery
last traded at $2.90 per barrel above the West Texas
Intermediate benchmark, according to Shorcan Energy brokers, up
from $2.40 per barrel above WTI on Tuesday.
Traders are looking ahead to major maintenance at one of
Suncor Energy Inc's SU.TO two oil sands upgraders starting
next month, which will curb supply. L2N14Y2GN
Meanwhile, Nexen Energy, a wholly owned subsidiary of
China's CNOOC 0883.HK , has shut down production at its 50,000-
bpd Long Lake facility following an explosion in mid-January
that killed two employees. L2N150046
Western Canada Select heavy blend crude for March delivery
last traded at $13.30 per barrel below WTI, tightening from
Tuesday's settlement of $13.80 per barrel below the benchmark.
U.S. crude futures CLc1 settled down 49 cents at $27.45 a
barrel, as stockpiles in Cushing, Oklahoma, hit record highs and
some refiners cut output. O/R
That put the outright price of Canadian heavy crude at
around $14.15 a barrel, a level at which most oil sands
producers cannot cover the cost of production, transportation
and blending.