The meeting, as expected, has become a showdown between Iran and other producers, particularly Saudi Arabia. Iran is preparing to quickly return 500,000 barrels of crude to the market once sanctions are lifted, after final approval of its nuclear agreement.
Iran's oil minister, Bijan Zangeneh, said his country is not discussing its production after the lifting of sanctions. "It is our right and anyone cannot limit us to do it," he reportedly said in Vienna. "And we do not expect our colleagues in OPEC to put pressure on us. ... It is not acceptable or fair," he told reporters.
Reuters reported that Iranian news agency Shana said Zangeneh asked other cartel members to make room for Iranian oil.
Read MoreSaudis float idea of production cuts - report
As a result of a lack of OPEC agreement, analysts say oil prices could continue to head lower after Friday's meeting winds down.
"Iran has made it very clear they feel perfectly entitled to come back to market with as much oil as they can," said Chris Weafer, senior analyst and founding partner of Macro-Advisory. "They believe they're owed by OPEC because they were forced to take a million barrels out. They now want to bring as much of that back as they can. That's what I believe we're going to see very clear at OPEC."
But Saudi Arabian officials have said they would listen to members' concerns at the meeting but they also said have repeatedly said they will not cut production unless other producers also cut back. So, the prospect of no cuts and even more oil from Iran coming to the market has made the possibility of a growing glut even worse.
Read MoreDaniel Yergin: Party is over for oil
"The others aren't going to make any concessions to allow that," said Weafer of Iranian oil's return. "You have an even more tense relationship between Saudi and Iran because of what's happening in Syria. So, there's even less political will to do a deal. They're determined to protect their market share, and they're not going to cut for anybody. And above all, they're in no mood to do a deal for Iran. ... This is a war over market share and they're not going to blink first."
Read MoreWhy OPEC's plan to balance oil market backfired
The Organization of the Petroleum Exporting Countries a year ago refused to cut production in the face of falling oil prices, and instead let the market determine price. As a result, the world has become even more flooded with oil, and WTI crude has dropped by more than 40 percent.
OPEC members are feeling the pinch, and some like Iran and Venezuela, want Saudi Arabia to cut back its production, currently more than 10 million barrels per day. But Saudi Arabia, the biggest oil exporter, is intent on keeping production elevated until higher-cost producers cut back, with U.S. shale producers chief among them.
Read MoreSaudi's stir speculation, but OPEC less relevant
To make room for the return of Indonesia, OPEC could actually raise its 30 million barrel per day quota, which it has been surpassing.