UPDATE 6-Oil slightly higher, trading sluggish, dollar weighs
* Brent off last week's high by more than $5
* U.S. dollar rises on stronger economic data
* Coming up: API report on U.S. inventories
NEW YORK, June 25 (Reuters) - Crude oil prices were slightly higher in lackluster trading on Tuesday, gains kept in check by a stronger U.S. dollar and less chance of reduced U.S. imports from Canada as part of a Canadian pipeline came back online.
The market kept trading sideways after a sharp selloff last week on news that the U.S. Federal Reserve said it would wind down its monetary stimulus program.
"That was a one-time gut check in reaction to the Fed," said Sarah Emerson, managing principal of energy research and forecasting firm ESAI Energy in Wakefield, Massachusetts. "Okay so we've shed $5, now do we see a reason to recoup that? It's a soft market, it's not a market that's getting a lot of information."
Canada's Enbridge Inc returned a major section of the Athabasca oil pipeline to service, after a spill on a smaller line disrupted the flow of oil sands crude and forced Suncor Energy to shut output in Alberta.
The specter of lower imports from Canada into the United States sharply narrowed the premium of global benchmark Brent crude oil to U.S. benchmark West Texas Intermediate .
The spread had widened by mid-morning and was last trading at $6.16. During the session, it hit $5.60, within 2 cents of its narrowest point reached in November 2011 at $5.58. In January 2011, the spread was as narrow as $5.18.
U.S. crude oil futures were up 40 cents at $95.58 per barrel at 11:30 a.m. EDT (1530 GMT), off the session high of $96.17 and down more than $4 from a $99.01 high made last Wednesday.
Front-month Brent crude oil was trading 66 cents higher at $101.82, off its three-week low hit on Monday.
Brent has dropped more than $5 from its high near $107 last week, and remained below the 15- and 50-day moving averages on a continuation chart.
Positive U.S. economic data strengthened the dollar. Durable goods orders rose more than expected in May and existing single-family home prices posted their biggest rise in seven years.
Oil is priced in dollars and when the greenback is strong, it makes oil more expensive for holders of other currencies. The dollar index, a measure of the dollar's strength against a basket of currencies, was last trading 0.30 percent higher.
Also lending some support was a report from energy data provider Genscape that said it detected reduced flows on TransCanada's Keystone pipeline.
Fears that tighter credit in China, the world's No. 2 oil consumer, would slow economic growth put a cap on prices.
The next snapshot of U.S. supplies is due later on Tuesday from industry group the American Petroleum Institute. U.S. crude stocks are expected to fall by 2 million barrels in the week to June 21. The API's report is due out at 4:30 p.m. EDT (2030 GMT).