The publisher of a major U.S. business magazine is predicting oil prices will drop sharply in the next 12 months.

Steve Forbes says inflation and pure speculation has contributed to the current spike in oil prices, which he describes as "a huge bubble" that will eventually pop. Mr. Forbes says he thinks oil will return to a price of $35 to $40 a barrel.

The billionaire publisher of Forbes Magazine made his comments Tuesday in Sydney, Australia, one day after oil prices briefly hit a record $70.80 cents over concerns of the effect Hurricane Katrina was having on oil refineries based in the U.S. Gulf Coast.

Some information provided by AP and AFP.