LONDON—(UPDATE) The price of New York crude oil reached $59.49 a barrel on Tuesday, the highest level for six months as the US currency slid against leading currencies, traders said.

New York's main futures contract, light sweet crude for delivery in June, reached the highest point since mid-November before standing at $59.13 a barrel, up 63 cents on Monday's close.

Brent North Sea crude for delivery in June rose 36 cents to $57.84 a barrel.

Crude oil prices have won support in recent days from rallying stock markets and a falling dollar rather than signs of rebounding demand for energy, according to analysts.

"This market seems to have found a bit of a comfort zone (at current price levels)," said Dave Ernsberger, a senior editorial director at energy information provider Platts.

A weaker US currency makes dollar-denominated crude cheaper for buyers of oil holding stronger currencies.

The dollar on Tuesday approached a seven-week low against the euro as safe-haven demand for the greenback declined on hopes of an improvement in the battered global economy, dealers said.

Many market watchers believe the dollar is likely to decline against most rival currencies in the coming months as risk aversion recedes.

However Ernsberger said he expects the rally in oil prices to weaken as the ailing global economy will keep demand down.

"There's not much steam left in the rally. The market's done a lot in the short span of time, there's not much it can do in this economic environment," he said.