ENLARGE

An oil worker at a refinery in Basra, Iraq, earlier this year. PHOTO: REUTERS

Oil futures were little changed in holiday-thinned Asia trading Friday, as traders adopted a wait-and-see stance ahead of next week’s crucial Organization of the Petroleum Exporting Countries meeting.

Light, sweet crude for January delivery were recently down four cents, or 0.1%, at $47.91 a barrel in the Globex electronic session of the New York Mercantile Exchange. Brent crude fell 10 cents, or 0.2%, to $48.90.

Trading has been subdued for much of the week. A holiday in the U.S. has meant fewer players were in the market, and many participants waiting to see what happens at the OPEC gathering.

Expectations for a sizable production cut by the group have been building. OPEC has agreed in principle to cap output at 32.5 million to 33 million barrels a day, but specifics will be ironed out next week. Saudi Arabia is backing an effort to cap production at 32.5 million barrels, people familiar with the matter told The Wall Street Journal. A large number of short positions, or bets on lower oil prices, mean prices could rise sharply if OPEC delivers a cut, according to analysts at Energy Aspects.

“With managed money short positions across WTI and Brent at record highs, the market is setting itself up for a possibly sharp short-covering rally—should OPEC deliver an output cut of around 1 million barrels a day,” Energy Aspects said in a note to clients.

Discussions of a cut have been heating up this week as OPEC delegates begin gathering in Vienna. The Saudi-backed proposal is the most concrete plan so far, but Iran and Iraq have had misgivings. Iraq is in need of oil revenue to help fund its war with Islamic State, while Iran is trying to ramp up exports after years of punishing sanctions.

Write to Dan Strumpf at daniel.strumpf@wsj.com