Brent falls below $60 for first time since 2009

Brent crude oil prices fell over $1 per barrel and below $60 for the first time since July 2009 in early European trading today as Chinese factory activity slowed and stumbling emerging market currencies dented demand expectations.

Oil futures have almost halved since June amid rising output and cooling demand, but producer club OPEC has so far resisted calls to cut production to shore up prices.

Data showing activity in China's factory sector shrank for the first time in seven months in December, adding to a slew of reports showing more fatigue in the world's No.2 economy, further dragged on oil prices.

"China leaves 2014 on a weak note (and) the calls for further monetary stimulus are getting louder," Singapore-based Phillip Futures said today.

Analysts said weakening emerging market economies and their currencies were also weighing on oil prices.

In Russia, the central bank hiked its key interest rate by 6.5 percentage points to 17 percent today in an attempt to halt a collapse in the ruble.

The Turkish Lira weakened to 2.3944 per dollar, a record low and traded at 2.3761 yesterday evening, then bouncing back 2.3584 this morning. The previous record was in January, when the central bank responded with an emergency meeting to raise its benchmark interest rate by 550 basis points.

In India, the Reserve Bank has been intervening in support of the struggling rupee in recent sessions, triggered by a worsening trade deficit, and in Indonesia the rupiah dropped to its lowest value in 16 years against the U.S. dollar amid spiking emerging market volatility.