U.S. crude hovered near $40 a barrel on Thursday, around its lowest price since July 2004, amid doubts in OPEC’s ability to curb output quickly after the group announced record production cuts.

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Lee Lowell at The Smart Profits Report says commodities are continuing their late summer swoon. Crude oil, natural gas, gold and silver have all taken heavy losses since mid-July, when the dollar began to rally. But like a lot of the contrarian investment experts we have published here on Contrarian Profits Lee says these commodities are oversold right now. A sharp rebound could be just around the corner…

In the energy market Thursday, crude for August delivery had a third down day in a row, dropping another $5.31 to close at $129.29/barrel. August reformulated gasoline dipped 12 cents, to $3.16/gallon.

Royal Dutch Shell Chief Executive  has weighed in alongside OPEC, claiming that there is no shortage of physical oil supplies, and the crude oil prices should drop.

“As the post-Memorial Day hangover lingers, and $4 per gallon gasoline becomes a national reality, expect more and more daily energy prognostications,” says William Patalon III in Money Morning.

You hear it everywhere in the press… “Oil is in a bubble and it’s all down to speculators driving up the price”.