Analysts Predict $5 a Gallon Gas

We’re just days into the new year and the price of crude is already slipping and sliding, but expectations are still high.

“We’re only beginning to see the bullish move and $100 a barrel is easily attainable first quarter of 2011, and maybe as high as some of the highs we saw a couple of years ago, closing in on $125-$130 a barrel for 2011,” says independent oil trader Daniel Dicker.

Analysts say the 15-percent jump in prices towards the end of 2010 is just the beginning of an upward trend triggered by a weak dollar and an ever increasing demand from places like China.

The International Energy Agency projects global demand will reach record levels this year.

For consumers in the U.S. that translates to prices north of $3 per gallon at the pump.

“$5 a gallon looks like it’s a way, a bit in the future. Although I think it’s possible in 2012 and in general we’re looking at higher prices across the next several years,” Dicker says.

While Congress has yet to reveal it’s full agenda, observers believe it will tackle those rising gas prices.

Meanwhile the oil companies are rolling out a campaign to ramp up production.