Brent crude fell close to $69 a barrel on Friday, putting it on track for a second weekly decline, as cuts to official selling prices from Saudi Arabia reverberated across the market.

Some analysts said the Saudi cuts to monthly prices for crude it sells to the United States and Asia show it is stepping up its battle for market share a week after refusing to support OPEC output cuts.

“It’s been weighing on the market, showing that OPEC is not ready to end its price war,” said Commerzbank analyst Eugen Weinberg.

The lower the better seems to be the new paradigm for OPEC.”  The January Brent crude contract dropped 53 cents to $69.11 a barrel. U.S. crude was down 55 cents at $66.26.

A strong dollar, which recently hit two-year highs versus the euro, is another bearish factor for oil prices, as its strength makes dollar-denominated crude more expensive in other currencies.

The battle for market share could intensify next year when Iraq starts to export more oil after Baghdad reached a temporary agreement with the Kurdish regional government.
Adding to supply, Libya is set to restart its largest oilfield, El Sharara, once a pipeline blockage is cleared.

The combined pressure is preventing Brent from rebounding from a near 13-percent plunge last week. Brent hit a five-year low of $63.72 a barrel last week Monday after averaging around $110 a barrel from 2011 to 2013. But some analysts expect oil prices to rebound in the next two years as the market stabilises following the