NEW YORK (TheStreet) -- Oil prices are up almost 5% on Wednesday afternoon, after Reuters reported that sources said OPEC members had agreed to limit oil production to 32.5 million barrels per day.
However, many traders are skeptical about the report, particularly after much of the commentary before today's informal OPEC meeting in Algeria indicated that an agreement would not be reached.
"This appears to be, from the trader perspective, another tactic from OPEC to keep the price a little higher than $45 at this point and potentially get us closer to $50," CNBC's Jackie DeAngelis said on Wednesday afternoon's "Power Lunch."
"That's seven million barrels less than what [OPEC] produced just last month," Again Capital's founding partnerJohn Kilduff said in disbelief.
"I can't comprehend that kind of cut," CNBC's Brian Sullivan added.
"It's nonsensical, I agree. That's the difference though. That's why I think you may have the number wrong," Kildruff said in agreement.
Limiting production to 32.5 million barrels per day makes it seem as though OPEC is leaving out a country, Sullivan noted.
"Exactly. There's something way off about this number," Kildruff reiterated.
Since everyone is skeptical, part of the run up in oil prices may be due to machine traders that "believe what they see when it comes to a headline," Kildruff noted.
If the Reuters report is indeed true, then the jump in oil prices today is justified and oil prices could end the year at $60 to $70 per barrel, Kildruff commented.
The production cut would take effect later this year when more details are revealed at OPEC's next formal meeting in Vienna on November 30.