Oil prices fell below $30 a barrel on concerns over the slowdown in the global economy and over the global oil oversupply. Iran plans to boost its oil exports once the sanctions are lifted off.

The weaker-than-expected economic data from China added to concerns over the slowdown in the world economy. The People's Bank of China (PBoC) released its new loans data on Friday. New loans in local currency in China were 597.8 billion yuan in December, down from November's 708.9 billion yuan and well below expectations of 700 billion yuan.

Market participants are also awaiting the release of the number of active U.S. rigs later in the day. The oil driller Baker Hughes reported on last Friday that the number of active U.S. rigs declined by 20 rigs to 516 last week. It was the lowest level since April, 2010.

WTI crude oil for February delivery dropped to $29.60 a barrel on the New York Mercantile Exchange.

Brent crude oil for February slid to $29.53 a barrel on ICE Futures Europe.