Crude oil prices ended near flat in a sluggish day of trading on Tuesday as stronger equity markets put a floor under prices and Brent's premium over U.S. crude slid below $6.
Some trading was attributed to squaring positions as traders bought contracts to cover short bets made on Monday as prices dropped to a three-week low, said Gene McGillian, analyst with Tradition Energy in Stamford, Connecticut.
Oil prices bounced slightly off a three-day rout last week that followed news that the U.S. Federal Reserve would scale back its quantitative easing program. The Fed news boosted the dollar, making commodities priced in the greenback more expensive for holders of other currencies.
Equity markets were higher on positive economic data.
U.S. durable goods orders rose more than expected in May and existing single-family home prices posted their biggest rise in seven years.
But the data did little to guide a rally in the oil market and acted more as a "double-edged sword", McGillian said.
"It means the Fed will pare back stimulus quicker than people think and people are waiting to see what the market will look like once the Fed takes its foot off accelerator."
Front-month U.S. crude oil futures finished the day 14 cents higher at $95.32 per barrel. U.S. crude is down nearly $4 from a $99.01 high made last Wednesday.
Brent crude oil ended 10 cents higher at $101.26 per barrel. Brent has dropped more than $5 from its high near $107 last week.
Gasoline and heating oil futures also ended flat, at $2.73 per gallon and $2.85 per gallon, respectively.
CANADIAN PIPELINES, OIL DATA
But by Tuesday, Enbridge Inc had returned a major section of its Athabasca oil pipeline to service and it said other lines are expected back in the coming days.
The spread settled at $5.94 after hitting $5.60 during the session, 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.
TransCanada Corp said on Tuesday that its Keystone crude oil pipeline system is operating normally despite earlier reports that said flows had slowed.
The American Petroleum Institute will release data expected to show U.S. crude stocks 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).
On Wednesday, the U.S Energy Information Administration will release its crude oil data report expected to show U.S. commercial crude oil stocks likely fell last week as refinery activity increased, according to a Reuters poll.
Oil stocks are still near record highs, also rallies in the oil market, analysts said.